Bogor: President Joko 'Jokowi' Widodo has once again ordered his economic team to take measures that can help reduce the country's current account deficit.
"Our current account deficit reached USD2.14 billion from January 2019 until May 2019," President Jokowi told a cabinet meeting here on Monday.
"We should analyze the data. Why did our imports increase? Why did our oil and gas imports rise significantly?" President Jokowi said.
According to data from the Central Statistics Agency (BPS), the country's exports reached USD68.46 billion in January-May 2019. It declined by 8.61 percent compared to the same period last year.
In the meantime, the country's imports reached USD70.6 billion in the first five months of 2019. It decreased by 9.23 percent compared to the same period last year.
According to a report from Bank Indonesia (BI), a general softening of national economic growth has occurred during the second quarter of 2019 as a corollary of declining export performance.
The recent escalation of international trade tensions has undermined export performance in Indonesia due to restrained global demand and lower commodity prices despite relative improvements for a number of commodities, including chemicals, iron and steel, coal as well as vegetable oil.
Non-building investment has thus far failed to increase significantly as a consequence of flagging exports notwithstanding positive building investment growth. Meanwhile, consumption is expected to pick up on the back of maintained public purchasing power and consumer confidence. Limited domestic demand gains have fed through to lower imports. Moving forward, efforts to stimulate domestic demand shall be increased in order to mitigate the adverse impact of global economic moderation stemming from international trade tensions.