Despite a Surplus of USD 2.09 billion, the May Trade Balance Is Not Encouraging
Tuesday, 16 June 2020
JAKARTA. Indonesia's trade balance in May 2020 experienced a surplus of USD 2.09 billion, as well as for the January-May 2020 period was recorded a surplus of USD 4.31 billion. However, despite having a surplus, both exports and imports have declined.
According to the Central Statistics Agency (BPS), this decline in imports and exports shoulde be wary because it could negatively impact the development of the national industry. Therefore, despite the surplus, the performance of the trade balance this month is not encouraging.
Indonesia's export value in May 2020 was recorded at USD10,53 billion or dropped 13.4% compared to export in April 2020. Meanwhile, when compared with export data in May 2019 it fell by 27.81%.
Whereas the import of Indonesia in May is at the lowest level in the last 13 months, or only USD 8.44 billion. This figure is down 42.2% of the value of imports in the same period in 2019.
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This decline was triggered by oil and gas imports by 23.04% which was influenced by the decline in crude oil and oil product imports as well as a decrease in non-oil and gas imports, each of which had decreased by 33.36%.
This non-oil and gas import figure is also the lowest in the past 13 months. During this period, the highest non-oil and gas import value occurred in May 2019 which was recorded at USD 13.77 billion.
When viewed by type of goods, which experienced the largest decline in imports are iron and steel imports at 42.46%, then organic chemical imports 40.24%, plastic and plastic product 38.58%, machinery and equipment 31.55% and machinery and mechanical equipment at 30.56%.
