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Latest Reports Trade
Indonesia's current account balance - the sum of the balance of trade (goods and services exports less imports), net income from abroad and net current transfers - showed a deficit of 1.7 percent of gross domestic product (GDP) in 2017, narrowly improving from a 1.8 percent deficit in the preceding year and constituting the lowest deficit since 2012.
Enggartiasto Lukita, Indonesian Trade Minister, said the nation's full-year 2017 exports climbed 16.2 percent year-on-year (y/y) to USD $168.7 billion. This is a positive growth pace. However, Indonesian President Joko Widodo, expressed his anger at Minister Lukita as Indonesia's export performance (especially in terms of value) lags far behind its counterparts in the Southeast Asian region.
Indonesian Foreign Minister Retno Lestari Priansari Marsudi said the Indonesian government imposed zero tariffs for certain Palestinian products entering Indonesia since the start of the year. This policy aims at supporting Palestine economically.
The economy of China grew 6.8 percent year-on-year (y/y) in the third quarter of 2017. An improving Chinese economy is important for the Indonesian economy as China is the biggest trading partner of Indonesia. Slightly over 10 percent of total Indonesian exports are shipped to China, the world's second-largest economy.
Indonesia's private shipping companies have raised tariffs for container freight to the eastern region of Indonesia by 25 percent. Carmelita Hartoto, General Chairwoman of the Indonesian National Shipowner's Association (INSA), said shipping companies hiked these tariffs as the previous tariffs were set too low.
Indonesia's Statistics Bureau (BPS) said Indonesia recorded a USD $1.72 billion trade surplus in August 2017, exceeding analysts' expectations and significantly higher than the USD $0.3 billion surplus that was recorded in the same month one year earlier. In fact, it was Indonesia's biggest surplus in nearly five years (in November 2012 Indonesia recorded a USD $1.8 billion trade surplus).
Indonesian entrepreneurs urge the central government to sign more bilateral free trade agreements because Indonesia's export products currently miss out on competitiveness as regional counterparts - such as those in Malaysia, Thailand and Vietnam - can enjoy little or zero import duties under such agreements with specific trading partners, while the Indonesian government remains hesitant to be engaged in these deals.
Chile and Indonesia are on track to sign a comprehensive economic partnership agreement (CEPA) before the end of 2017. Both nations concluded the fourth round of negotiations on 23 August 2017 in Jakarta, while the final round is scheduled for October in Chile. Iman Pambagyo, Chief of the Indonesian negotiating team, said that in the first stage of the partnership a number of specific goods are prioritized to be free from import tariffs.
Contrary to expectations Indonesia posted a trade deficit in July 2017. The nation's Statistics Agency (BPS) announced on Tuesday (15/08) that Southeast Asia's largest economy experienced a USD $271.2 million trade deficit last month, the country's first deficit in 19 months.
Globalization and free market conditions (such as the ASEAN Economic Community), offer opportunities to enhance the exchange of goods and services between countries. However, it also requires good language and communication skills. Without these skills nations only have limited advantage of the freer flow of trade and services because the difficulty of communicating can undermine the flow of trade and investments.
Latest Columns Trade
Last month we warned that Indonesia’s trade performance could easily continue to contract in February 2023, thereby continuing the trend we have seen since August 2022. Moreover, February is a short month, and therefore it typically has trouble to compete with other months in terms of trade activity.
On 06 February 2023, Indonesia’s Statistical Agency (Badan Pusat Statistik, or BPS) released the latest official gross domestic product (GDP) data of Indonesia. The data were in line with expectations.
In the second half of September 2022 the Indonesian rupiah experienced some steep depreciating pressures, nearly touching IDR 15,300 per US dollar. It prompted Bank Indonesia to step and intervene in markets to limit the currency’s decline; a step that typically leads to a drop in the country’s foreign exchange reserves.
Both Indonesia’s export and import performance was quite amazing in March 2022. While we expected imports to rebound ahead of the start of the Ramadan month (on 1 April 2022), a month that typically gives rise to a big increase in consumption, we did underestimate Indonesia’s export performance in last month’s forecast.
In January 2022 Indonesian Minister for Coordinating Economic Affairs Airlangga Hartarto said the Indonesian government aims to ratify the Regional Comprehensive Economic Partnership (RCEP) trade agreement in the first quarter of 2022. Just like the Philippines and Myanmar, Indonesia is still to ratify the RCEP even though this agreement already took effect per 1 January 2022.
According to the latest data from Statistics Indonesia (Badan Pusat Statistik, or BPS), Indonesia posted a USD $4.37 billion trade surplus in September 2021. It is a slightly lower surplus compared to the previous month (when Indonesia posted its highest ever monthly trade surplus), but remains one of the highest surpluses in the history of Indonesia.
Indonesia recorded another big trade surplus in July 2020. Based on the latest data from Indonesia’s Statistical Agency (BPS), the country's trade surplus reached USD $3.26 billion in July 2020, a huge improvement from the USD $280.1 million deficit it recorded in the same month one year earlier.
For the second consecutive month Indonesia recorded a big trade surplus. According to the latest data from Indonesia’s Statistical Agency (BPS), the country posted a USD $1.27 billion trade surplus in June 2020.
On 5 May 2020 Statistics Indonesia (Badan Pusat Statistik, BPS), a non-departmental government agency, released the first quarter gross domestic product (GDP) data of Indonesia for the year 2020. These data were highly anticipated as policymakers, analysts, and stakeholders are particularly interested in finding out to what extent damage has been done to the Indonesian economy by the self-imposed restrictions.
In line with estimates, Indonesia’s trade balance showed another deficit in January 2020. Based on the latest data from Statistics Indonesia (Badan Pusat Statistik, or BPS), a USD $864.2 million trade deficit was recorded in the first month of the year.
