Business – The Central Statistics Agency (BPS) announced a US$346.6 million trade deficit in November, breaking the streak of a 10-consecutive-month trade surplus, caused by an increase of imports to the value of $11.5 billion, especially in investment goods.

"This is the first time Indonesia's trade recorded a deficit in November, [...] consisting of a $58.6 million oil and gas trade deficit and a $287.8 million non-oil and gas trade deficit. However, we still recorded a surplus cumulatively," said BPS head Suryamin in a press conference in Jakarta on Tuesday.

The November deficit, he said, brought the year-to-date surplus figure to $7.81 billion, resulting from $138.42 billion in exports and $130.6 billion in imports.

According to BPS data, imports rose 3.6 percent month-on-month (MoM) in November because of a hike of imports in investment-related goods.

"Four commodities related to investment recorded increased imports. Machinery and electrical tools [imports] rose 11.7 percent, iron and steel rose 17.6 percent, vehicle and spare parts rose 0.96 percent, and iron and steel products rose 21.79 percent," he told.

In addition, he added, food and beverage imports also increased in November as businesspeople prepared to meet the growing demand of the Christmas and New Year holidays.

On the other hand, exports plunged 7.91 percent last month (MoM). According to Suryamin, the fall in exports was caused by decreased exports of non-oil and gas commodities, which retreated by 10.81 percent (MoM).

The decline in non-oil and gas exports especially occurred with fats and edible oils, amounting to $152.8 million. "On the other hand, footwear exports recorded the largest increase, up to $65.3 million," Suryamin stated.

Meanwhile, oil and gas exports in November managed to increase by 14.67 percent (MoM), caused by an increase of crude oil by 41.25 percent and gas by 0.6 percent. In the same period, exports of oil products fell 10.36 percent. (ags)

Source: http://www.thejakartapost.com/news/2015/12/15/novembers-deficit-due-investment-agency-says.html