Indonesia's finance ministry believes the market will stabilise and is preparing alternatives for financing
JAKARTA: Indonesia posted its widest trade deficit in more than five years in November as exports fell, adding pressure on the currency.
The trade deficit was $2.1 billion, much bigger than the $735 million shortfall predicted by economists in a Bloomberg survey, and the worst result since July 2013.
Key Insights
Imports jumped 11.7 percent from a year earlier, according to figures released by the statistics bureau on Monday.
Interestingly, that is the weakest pace since March after the government adopted measures to reduce imports, including higher tariffs on some goodsExports fell 3.3 percent, its first decline since June 2017.
The government will boost the competitiveness of Indonesian exports, including through incentives and keep reviewing the import policies, Finance Minister Sri Mulyani Indrawati told reporters in Jakarta. Indonesia needs to be cautious about its export markets as China might have to go through adjustments following the trade war with the U.S., she said.
Indonesia has been swept in an emerging-market rout this year, with the currency losing more than 7 percent against the dollar.
The current-account deficit has been among the key vulnerabilities cited by investorsIndonesian stocks extended their decline, making the benchmark Jakarta Stock Exchange Composite Index among the worst performers in Asia on Monday. - Bloomberg
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