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Latest Reports Trade
Indonesia recorded a big trade surplus in May 2020. Based on the latest data from Indonesia’s Statistical Agency (BPS), the country posted a trade surplus worth USD $2.09 billion in May 2020, one of the highest monthly surpluses in recent years. But is it reason to become excited?
After two months of trade surpluses in February and March 2020, Indonesia’s trade balance swung back to a deficit in the following month. According to the latest data from Statistics Indonesia (BPS), Indonesia experienced a USD $344.7 million trade deficit in April 2020.
Last month we basically came to the conclusion that the novel coronavirus (COVID-19) crisis has a direct (short-term) positive effect on Indonesia’s trade performance (although the longer term consequences are clearly negative) as Indonesia managed to boost exports (possibly because it filled the gap left by China’s lockdown), while imports into Indonesia fell markedly (partly because of the lower need for inputs for export-oriented output), thus leading to a comfortable trade surplus.
Amid the novel coronavirus (COVID-19) crisis, Indonesia managed to post a strong trade surplus in February 2020. Based on the latest data released by Statistics Indonesia (BPS), Indonesia recorded a USD $2.33 trade surplus. It was the largest monthly trade surplus for Southeast Asia’s largest economy since September 2011.
The trade balance of Indonesia showed a relatively small deficit in the last month of 2019. Based on the latest data from Statistics Indonesia (Badan Pusat Statistik, or BPS), a USD $28.2 million trade deficit was recorded in December 2019, much smaller than analysts had predicted.
Indonesia’s trade balance swung back into a surplus in October 2019. Statistics Indonesia (BPS), which released the country’s latest trade data on 15 November 2019, reported a USD $161 million trade surplus for Indonesia in October. It is an improvement from the USD $164 million trade deficit the country had experienced in the preceding month, and a huge improvement from the USD $1.76 billion trade deficit in the same month one year earlier (October 2018).
On Tuesday 15 October 2019 the Indonesia Trade Investment Summit will be held in the Ritz-Carlton Hotel (Pacific Place) in Jakarta. This high-profile event focuses on the development of investment and trade, including strategies, targets and challenges.
Indonesia’s trade balance swung back into a deficit in July 2019 as the country’s exports could not compensate for its imports. However, at USD $63 million, the monthly deficit is not too big (compared to the USD $2.3 billion and USD $1.1 billion deficits that were recorded in April and January, respectively).
In this month’s edition we decided to zoom in on economic relations between Switzerland and Indonesia, two countries that are both blessed with natural beauty. Although a quick look at the available data shows that trade and investment flows between both nations are quite small, we detected quite a lot of interesting activity in recent years that could – and should – lead to a boost in investment and trade between both countries.
For the first time in several years, Indonesia Investments decided that it had to adjust its outlook for Indonesia’s economic growth. Since 2016, Indonesia’s modestly accelerating economic growth rate had been fully in line with our estimates.
Latest Columns Trade
Indonesia has always been hesitant to join free-trade deals with other nations on fears that domestic industries cannot compete with foreign counterparts, which could lead to an influx of cheaper, yet higher-quality foreign products. During his visit to the White House, Indonesian President Joko Widodo said Indonesia intends to join the Trans-Pacific Partnership (TPP) trade deal. Back home, this statement led to concern. What are the negative consequences for Indonesia when joining this deal?
Dozens if not hundreds of trade fairs, expos and trade show events for all sectors of business take place in Indonesia throughout each year. There are the Indonesian Infrastructure week (IIW), ILDEX Foodtech expo, International furniture expo, Indonesia marine expo (IME), to name a few. Exploring market opportunities by participating in (international) trade fairs is a great starting point for many enterprises that are thinking of, or already anticipating of, doing business in Indonesia. Your fair presence can be part of a broader positioning strategy how to enter the Indonesian market, and target certain key government and corporate clients.
Since late 2011 Indonesia has been plagued by a structural current account deficit (CAD) that has worried both policymakers and (foreign) investors. Despite Indonesian authorities having implemented policy reforms and economic adjustments in recent years, the country’s CAD remains little-changed in 2015. The World Bank and Bank Indonesia both expect the CAD to persist at slightly below 3 percent of the nation’s gross domestic product (GDP) in 2015, alarmingly close to the boundary that separates a sustainable from an unsustainable deficit.
Indonesia posted a higher-than-expected USD $454.4 million trade surplus in April 2015. Previously, analysts predicted to see an April trade surplus of around USD $120 million. However, the USD $454.4 million trade surplus was smaller than the (revised) USD $1 billion trade surplus recorded in March. Moreover, the April surplus (the country’s fifth consecutive trade surplus) is primarily caused by a large drop in imports, signalling that Indonesia’s economic performance remains sluggish at the start of Q2-2015.
The Customs Identification Number (NIK) in Indonesia is a personal identity number given by the Directorate General of Customs and Excise to users of customs services, such as importers and exporters. This customs number gives customs users the possibility to access or connect with the customs system. The registration of a Customs Identification Number is required in order to perform customs activities. Without such number trading companies are (in most cases) not able to perform import or export activities.
An Import Identification Number (API) is required in case a company wishes to import goods into Indonesian territory. Without such number a company is not allowed to perform any import activities. Minister of Trade Regulation number 27/M-DAG/PER/5/2012 regarding Provisions on Importer Identification Number (API) as amended by Minister of Trade Regulation number 59/M-DAG/PER/9/2012 (Trade Regulation) regulates the types of API based on the intended use for the product imported.
The central bank of Indonesia expects that Indonesia’s current account deficit will decline to below the three percent of gross domestic product (GDP) mark by the end of this year supported by sharply falling global oil prices and Indonesia’s recent subsidized fuel price hike. Hendar, Deputy Governor of the central bank, said that for every USD $1 decline in global oil prices, the country’s current account deficit narrows by about USD $170 million. Indonesia’s current account deficit fell to 3.1 percent of GDP in Q3-2014 (from 4.06 percent of GDP in Q2-2014).
After having recorded a trade deficit for several months, Indonesia finally posted a USD $20 million trade surplus in October 2014, according to data from the country’s Central Statistics Agency (BPS) released on Monday (01/12). Exports in October amounted to USD $15.35 billion, while imports were recorded at USD $15.33 billion. The improvement in Indonesia’s trade balance was mainly on the back of growth in the country’s non-oil & gas sector exports. This sector saw a surplus of USD $1.13 billion (up from USD $760 million in September).
Governor of the central bank of Indonesia (Bank Indonesia), Agus Martowardojo, commented on Indonesia’s troubled current account balance on Tuesday (12/08). Martowardojo said that he expects the balance to improve in 2014. Last year, the current account deficit of Southeast Asia’s largest economy reached 3.3 percent of gross domestic product (GDP); a level which is generally regarded as unsustainable. This year, the deficit may ease to 3 percent of GDP. For investors the current account balance is an important matter. Why?
According to Statistics Indonesia (BPS), the country’s trade balance in June 2014 recorded a deficit of USD $0.30 billion after the USD $0.05 billion surplus in the previous month. The performance of Indonesia’s trade balance was influenced by shrinkage of the country’s non-oil & gas surplus amid a lower oil & gas deficit compared to May 2014. Meanwhile, inflation was up 0.93 percent (month-to-month) in July 2014; a good performance amid the Ramadan and Idul Fitri festivities. Annual inflation eased to 4.53 percent (year-on-year).
