JAKARTA: Indonesia's trade surplus narrowed in June to its smallest in four months as exports rose less than expected amid strong import growth, data from the statistics office showed on Monday, after two big copper miners halted shipments.
The June surplus was $2.39 billion, falling short of economists' median forecast of $2.98 billion in a Reuters survey, and May's revised surplus of $2.92 billion.
The value of shipments from Indonesia, the biggest economy in southeast Asia, has gradually declined from its peak during a global commodity boom in 2022, amid softening prices.
Several economists said the June data remained in line with market expectations of a trend of a narrower goods trade surplus this year, which will widen the current account deficit and may pressure the rupiah exchange rate.
"We anticipate a widening current account deficit, in line with the declining trade surplus, primarily due to weakening global demand for export products," economist Hosianna Situmorang of Bank Danamon said on the WhatsApp messaging app.
June exports rose 1.17% on a yearly basis to $20.84 billion, less than the 5.46% expected in the Reuters poll.
However, a drop of 16% in June shipments of mining products dampened overall export growth, which included falling shipments of coal, steel and copper.
Copper miners Freeport Indonesia, a unit of U.S. mining giant Freeport-McMoran, and Amman Mineral Internasional , could not ship any copper concentrate to overseas buyers last month as the Indonesian government was still working on extending their export permits.
Jakarta was supposed to stop all copper concentrate exports by the end of May, but authorities have promised a dispensation until the end of the year for Freeport and Amman, whose refining smelters have yet to reach full capacity.
Freeport's new permit was issued this month, but Amman's permit is still being processed.
June imports were worth $18.45 billion, up 7.58% on a yearly basis, compared with the poll forecast of 6.55%.
The rise in imports of fuel, as well as raw materials and consumer goods, drove overall growth.
State energy firm Pertamina ramped up tenders for fuel purchase in June after a fire at one of its production units at the Balikpapan refinery. It had sought June deliveries of products such as jet fuel and gasoil. - Reuters
