Jayanty Nada Shofa, Jakarta – Indonesia's deficit with its top trading partner China had more than doubled in July, the Central Statistics Agency (BPS) announced Thursday.

China was the biggest deficit contributor in Indonesia's non-oil and gas international trade balance in July. BPS data showed that Indonesia's imports of Chinese goods had been topping what Jakarta shipped to Beijing. Last month, Indonesia's goods exports to China hit $4.8 billion. However, Indonesia's imports from China amounted to $6.5 billion.

This resulted in Indonesia's deficit with China skyrocketing to $1.7 billion in July, marking an over twofold increase compared to the $682 million deficit with Beijing posted the month before. The recent figures were also more than double the $635.7 million deficit in July 2023.

"Machinery and mechanical appliances were the largest contributors to our July deficit with China, [standing at $1.52 billion], seconded by electrical machinery and equipment [around $1.2 billion]," Amalia A Widyasanti, the acting head at BPS, told a press briefing.

Data showed that vehicles and parts thereof contributed around $343 million to Jakarta's deficit with Beijing.

The deficit that Indonesia had with Australia – the second-largest contributor to the negative balance – totaled $602.8 million in July. This was still less than half of the deficit with Beijing.

Both Indonesia and China are part of the world's largest trade pact, the Regional Comprehensive Economic Partnership (RCEP), which enables its signatories to enjoy major tariff removals. ASEAN – of which Indonesia is a member – is hoping to upgrade its trade deal terms with China no later than this year.

According to BPS, Indonesia exported an estimated $2.61 billion more in non-oil and gas goods than it imported in July. The archipelagic country, however, posted a $2.13 billion deficit when it comes to oil and gas trade. These numbers brought Indonesia to a total surplus worth around $470 million that month. This also puts Indonesia on a 51-month positive trade balance streak since May 2020.

Source: https://jakartaglobe.id/business/indonesias-deficit-with-china-more-than-doubles-to-17-billio