Trade Balance Indonesia May 2017: Declining on Ramadan Imports
Indonesia's Statistics Agency (BPS) announced Indonesia's trade surplus stood at USD $474 million in May 2017, significantly below analysts' estimates and the revised April 2017 trade surplus of USD $1.33 billion. Key reason that explains Indonesia's lower trade surplus is rising imports ahead of the Ramadan (the Islamic fasting month) and Idul Fitri celebrations (the festivities that follow after the end of Ramadan).
Indonesia's exports surged 24.08 percent year-on-year (y/y) to USD $14.29 billion in May 2017, beating forecasts. Growth was particularly supported by shipments of mining products (surging nearly 60 percent y/y). BPS also said exports of oil and gas as well as agriculture products rose.
Read more: Indonesia's Official May 2017 Trade Data
Meanwhile, Indonesia's imports rose 24.03 percent (y/y) to USD $13.82 billion in May 2017, significantly higher than the 9.90 percent (y/y) that was expected by analysts. Imports rose amid increased demand ahead of Ramadan that started in late-May. Most imports originated from China, Japan and Thailand. In fact, more than a quarter of imports were shipped from China, while slightly over 10 percent came from Japan.
