Aditya Suharmoko, Jakarta – Indonesia's exports in January slowed 13 percent from December, despite booking a year-on-year increase of 59 percent due to a low base in January last year, the Central Statistics Agency (BPS) reported Monday.
The country exported US$11.57 billion worth of goods in January. About $9.23 billion of the total were non-oil-and-gas products, the BPS said.
The decline in exports was partly due to a 15 percent decline of non-oil-and-gas exports to $9.23 billion from $10.85 in December, and a 6 percent decline of oil and gas exports to $2.34 billion from $2.50 billion.
Animal fat and vegetable oil experienced the most decline among the non-oil-and-gas products, the BPS said, adding that the sector's exports dropped by $1.28 billion in January.
Exports decline to all but three major destination countries: Japan, Australia and Thailand, which booked an increase of $65.3 million, $17.6 million and $14.3 million, respectively.
Indonesia sold most non-oil-and-gas products to Japan with $1.32 billion, China with $1.01 billion and the US with $997.7 million, it said. Industrial products covered 58 percent of total exports, mining and other products 18 percent and agricultural products 3 percent; oil and gas products 20 percent.
The government said last month non-oil-and-gas exports are expected to grow by between 7 and 9 percent this year on the back of healthy global demand and prices, as stated by Deputy Trade Minister Mahendra Siregar.
Imports also experienced a decline of 7 percent to $9.54 billion from $10.3 billion booked in December, the BPS said. But a year-on-year figure revealed imports rose 44 percent. Non-oil-and-gas imports were $7.59 billion and oil and gas imports were $1.96 billion.
Indonesia mostly imported machinery with 19 percent of total non-oil-and-gas imports and electrical equipment at 14 percent.
The country imported most non-oil-and-gas goods from China with $1.41 billion or 18.5 percent of total non-oil-and-gas imports, followed by Japan with $1.07 billion or 14 percent and Singapore with $784.2 million or 10 percent.
Citi analyst Johanna Chua said since exports slowed more than imports, the trade surplus in January narrowed to $2.03 billion from $3.05 billion in December.
"We expect the trade surplus to slim as domestic demand continues to pick up, while uncertainties in the Euro arena remain," she said.
Cheap imported goods from China might begin to flood Indonesia in the second quarter of this year as a result of the full implementation of the free trade agreement with the country early this year, Agung Kuswandono, director at the Directorate General of Customs and Excise, said last month.
The agreement between China and ASEAN countries (ACFTA) became fully effective on Jan. 1, when zero tariffs came in on 6,682 tariff positions in 17 sectors including 12 in manufacturing and five in agriculture, mining and maritime sectors.