Indonesia's Oil Trade Deficit Widens

Indonesia has experienced a deficit in its oil balance of payments since 2003, and this deficit has widened each year, as shown in the graph. According to British Petroleum (BP) data, Indonesia's oil production is 1.18 million barrels per day, while consumption reaches 1.21 million barrels per day. As a result, the oil balance shows a deficit of 54,000 barrels per day.

Since then, Indonesia's oil balance has consistently shown a deficit, widening until 2018 due to increasing domestic consumption and declining production. In 2018, the national oil balance deficit increased by 13.79% to 977,000 barrels per day compared to the previous year. This widening deficit was driven by a 5.24% increase in oil consumption to 1.79 million barrels per day, coupled with a 3.52% decrease in production to 808,000 barrels per day. This resulted in a deficit in the oil and gas trade balance last year due to the large volume of oil imports.

(Read Databoks: [Deficit in Indonesia's Oil and Gas Trade Balance in 2018 is the Worst?](https://databoks.katadata.co.id/datapublish/2019/01/20/defisit-neraca-perdagangan-migas-indonesia-2018-terburuk))

For information, Indonesia's oil and gas trade balance throughout 2018 reached US$12.7 billion. Meanwhile, the January-July 2019 period showed a deficit of US$4.92 billion, down 28.22% compared to the same period the previous year at US$6.86 billion.

(Read Databoks: [Indonesia's Crude Oil Trade Balance has been in Deficit Since 2013](https://databoks.katadata.co.id/datapublish/2019/02/13/neraca-perdagangan-minyak-mentah-indonesia-defisit-sejak-2013))