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Indonesia sustains trade surplus for 45 consecutive months despite export decline

Jakarta Globe - February 15, 2024

Arnoldus Kristianus, Jakarta – Indonesia's trade balance has maintained a surplus for 45 consecutive months. In January 2024, the surplus reached $2.02 billion, despite facing a notable decline in exports.

According to Amalia Adininggar Widyasanti, Acting Head of The Central Statistics Agency (BPS), compared to December 2023, there was a contraction in the trade balance of 38.6 percent. In comparison to January 2023, the trade balance experienced a contraction of $1.87 billion or 48.2 percent.

"Indonesia's trade balance has posted a surplus for 45 consecutive months since May 2020," said Amalia during a press conference at the BPS office in Jakarta on Thursday.

The BPS recorded that the export value reached $20.52 billion, a decrease of 8.34 percent from December 2023. Compared to the same period the previous year, there was a contraction of 8.06 percent. The monthly and annual decrease in export value was mainly contributed by the decline in the export value of the processing and mining sectors.

The surplus in January 2024 was supported by a non-oil and gas commodity surplus of $3.32 billion. The main contributors to the surplus were mineral fuels, vegetable fats, and oils, as well as iron and steel.

Meanwhile, the trade balance for oil and gas commodities recorded a deficit of $1.30 billion in January 2024. The deficit in the trade balance for oil and gas was driven by a decrease in the export value of oil, with a contribution to the decline of 0.89 percent.

Looking at trade partner countries, the three largest contributors to the surplus were India with $1.38 billion, the United States with $1.21 billion, and the Philippines with a surplus of $0.63 billion.

At the same time, Indonesia also experienced a trade balance deficit with three major trading partner countries, namely China with a deficit of $1.38 billion, Australia with a deficit of $0.43 billion, and Thailand with a deficit of $0.42 billion.

"The deepest deficit with China is driven by machinery and mechanical equipment and parts, electrical machinery and equipment and parts, as well as plastics and plastic goods," said Amalia.

Source: https://jakartaglobe.id/business/indonesia-sustains-trade-surplus-for-45-consecutive-months-despite-export-declin