The FINANCIAL — Indonesia’s trade surplus fell sharply to $430 million in August from a revised $1.38 billion in July as imports rose faster than exports, government data showed on September 15, according to Nasdaq.
The surplus was slightly lower than the median forecast of 10 economists polled by The Wall Street Journal for a $478 million surplus.
The official Statistics Agency said exports rose 10.79% from a month earlier to $12.27 billion, but dropped 12.28% from a year earlier. Imports increased 21.69% to $12.27 billion from July, and dropped 17.06% from the previous year.
The on-month increase in exports rise was propelled by a 7.67% increase in oil exports, a 41.04% increase in vehicle and spare parts and a $37.26% gain in machinery exports, the agency said.
The biggest contributor to the rise in imports in August was the inward shipment of machinery and mechanical appliances that rose 26.46% from July to $410 million, and electrical appliances that edged up 20.43% to $214.5 million. Steel imports increased 61.53% to $181.7 million while that of plastic rose 40.28% to $177.9 million. This may signal an early recovery in investment and manufacturing activity in Indonesia.
The narrower trade surplus may weigh on the Indonesia’s current-account deficit. But the factors that bolstered the rise in exports and imports in August from a month earlier may indicate Indonesia’s waning reliance on raw-commodity exports.
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