Jakarta: Bank Indonesia (BI) is confident that the trade surplus recorded in May 2019 will have a positive impact on the current account outlook for 2019, which is projected at 2.5%-3.0% of GDP.
"Moving forward, Bank Indonesia will continue to coordinate with the Government to monitor global and domestic economic developments in order to maintain external stability, including the trade balance and current account," the central bank said in a press statement released on Monday.
Indonesia’s Trade Balance recorded a USD0.21 billion surplus in May 2019, reversing the USD2.28 billion deficit posted the month earlier. A non-oil and gas trade surplus together with a narrower oil and gas trade deficit were the main contributors to the surplus.
The non-oil and gas trade surplus stemmed from a growth surge of non-oil and gas exports coupled with flatter non-oil and gas imports. Meanwhile, the oil and gas trade deficit narrowed on increasing oil and gas exports along with decreasing oil and gas imports.
The non-oil and gas trade surplus stood at USD1.19 billion in May 2019 after recording a USD0.79 billion deficit the month earlier. On one hand, the improvement was driven by an increase of non-oil and gas exports from USD12.37 billion in April 2019 to USD13.63 billion in the reporting period, induced by shipments of vegetable/animal oils and fats, jewellery/gems, as well as mineral fuels. On the other hand, non-oil and gas imports fell USD0.72 billion (mtm) to USD12.44 in May 2019, primarily held back by imports of electrical machinery and equipment, iron and steel as well as machinery and mechanical appliances.
The oil and gas trade deficit decreased to USD0.98 billion in May 2019 from USD1.49 billion in the previous period. The improvement was prompted by an uptick of oil and gas exports from USD0.74 billion in April 2019 to USD1.11 billion in May 2019 on the back of gas exports as export volume increased yet export prices decreased. Meanwhile, oil and gas imports declined from USD2.24 billion to USD2.09 billion in the reporting period, weighed down by refined products and gas in line with lower export volume affecting both components.