JAKARTA: Indonesia’s trade surplus slightly increased to US$1.27bil in February, compared to US$954mil in the previous month, despite a rise in capital goods imports.
The figure was lower than in the May to December period last year, when the country’s trade surplus consistently exceeded the US$2bil mark.
In total, imports rose 10.85% year-on-year (y-o-y) to US$20.89bil, led by capital goods imports, which surged 33.68% y-o-y to US$4.61bil.
This was followed by consumer goods imports, which increased 19.84% to US$1.76bil and raw material imports, which rose 4.25% to US$14.52bil.
Precious metals and jewelry recorded the highest annual import growth, rising 63%, followed by mechanical appliances and electrical machinery, which grew by 51.6% and 19.6%, respectively.
Overall, imports in the January to February period totalled US$42.09bil, reflecting a 14.44% annual increase.
Permata Institute for Economic Research noted that the figure was slightly above its 8.74% forecast and moderated from 18.21% in January.
Despite the slowdown, import growth continued to outpace exports, reflecting a weaker global economic outlook alongside Indonesia’s pro-growth policies that have sustained domestic demand, the Jakarta-based research institute wrote in a statement.
“By economic category, imports of consumer goods, raw materials and capital goods all posted growth.
“However, raw materials and capital goods saw their growth moderate amid rising trade war uncertainties in February, while consumer goods imports accelerated in line with typical Ramadan seasonal patterns,” it said.
Exports, meanwhile, only edged up 1.01% y-o-y.
“Key commodities driving this uptick included animal and vegetable fats and oils, nickel and its derivatives, as well as electrical machinery and equipment,” said Ateng Hartono, Statistics Indonesia deputy for distribution and services statistics, during a press briefing on Wednesday.
Shipments of the main commodities in the animal and vegetable fats category, which includes crude palm oil (CPO), rose 16.19% y-o-y to US$3.1bil in February, followed by iron and steel, which increased 3.3%.
However, the country’s mineral fuels exports, which include coal, dropped 15.65% from the same period last year.
Indonesia’s cumulative trade surplus of US$2.23bil in January and February this year was lower than the US$6.59bil recorded in the same period last year.
Trade with China continued to be the largest contributor to the deficit, with the figure increasing from US$3.3bil in January and February last year to US$4.99bil this year.
“The deficit with China was driven by mechanical appliances, electrical machinery and vehicles,” Ateng said.
Beyond China, two other countries contributing to the largest trade deficits were Australia and Singapore, with the figures also increasing for both.
Indonesia recorded a US$1.69bil deficit with Australia, driven by precious metals, cereals and coal.
Meanwhile, the deficit with Singapore reached US$1.48bil, driven by mechanical appliances and precious metals.
Despite having signed an Agreement on Reciprocal Trade aimed at reducing its trade surplus with the United States, Indonesia continued to widen its trade balance with Washington.
The surplus increased from US$2.63bil to US$3.11bil in the first two months of the year, driven by exports of electrical machinery, clothing and CPO. — The Jakarta Post/ANN
