Indonesia’s July trade surplus narrows more than expected
INDONESIA’S trade surplus shrank more than expected in July to US$1.31 billion, as imports contracted less than predicted, data from the statistics bureau showed on Tuesday (Aug 15).
A Reuters poll of economists had expected a July surplus of US$2.53 billion. Trade surplus in the previous month was US$3.46 billion.
South-east Asia’s largest economy booked its biggest trade surplus last year as exports jumped, driven by a global commodity boom.
The surplus has narrowed this year as exports declined amid falling commodity prices.
Still, July was the 39th straight month that Indonesia has booked a trade surplus. The long run of monthly trade surplus has helped to stabilise the rupiah.
“A still healthy run-rate for the trade surplus to date, bodes well for external balances, by extension being supportive of the rupiah, at a time when global uncertainties are weighing on the currency,” Radhika Rao, an economist with DBS said.
The rupiah barely moved after the data. The currency hit a fresh five-month low against the US dollar on Tuesday on souring market sentiment due to China’s interest rate cut and rising US Treasury yields.
In July, shipments from Indonesia plunged 18.0 per cent on a yearly basis to US$20.88 billion, roughly in line with the poll’s prediction of an 18.3 per cent drop, as prices of its top commodities like coal and palm oil fell.
Imports dropped 8.3 per cent on a yearly basis to US$19.57 billion, compared with the 15.5 per cent fall predicted by economists in the poll. REUTERS
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