AseanOutlook.com – Indonesia’s trade balance regained a USD2.34 billion surplus in February 2020 to reverse the previous USD0.64 billion deficit recorded one month earlier.
A wider non-oil and gas trade surplus was the main contributor to Indonesia’s overall trade surplus in line with stronger non-oil and gas exports coupled with declining non-oil and gas imports.
Meanwhile, the oil and gas trade deficit narrowed as oil and gas imports retreated against a backdrop of stable oil and gas export performance.
In February 2020, the non-oil and gas trade surplus stood at USD3.27 billion, up from USD0.53 billion surplus recorded one month earlier. The gains come amidst stronger non-oil and gas exports of coal, crude palm oil (CPO) and several manufacturing products.
Executive Director Communication Departement, Onny Widjanarko said the wider surplus also stemmed from declining non-oil and gas imports, primarily held back by machinery and mechanical appliances as well as electrical machinery and equipment due to disruptions in the global supply chain caused by the COVID-19 outbreak.
“Meanwhile, the oil and gas trade deficit improved in February 2020 to USD0.93 billion from USD1.17 billion in the previous period. The deficit reduced in line with declining oil and gas imports, primarily refined products and gas, against a backdrop of stable oil and gas exports, boosted by positive crude oil export performance,” added Onny.
Bank Indonesia is confident that the trade surplus amassed in February 2020 will contribute to bolster external resilience in Indonesia. Moving forward, Bank Indonesia will continue to strengthen policy synergy with the government and other relevant authorities in order to reinforce external resilience, including the trade balance outlook.