Indonesia's Trade Balance Only Surpluses US$1.02 Billion at the End of 2021: Here are the Contributing Factors

Indonesia recorded a trade surplus of US$1.02 billion in December 2021. This figure is down 71% compared to the previous month's US$3.52 billion.

Compared to December 2020, which recorded a surplus of US$2.10 billion, the December 2021 trade surplus decreased by 51.42%.

The December 2021 trade surplus occurred because export values were higher than import values. Exports in December reached US$22.37 billion, while imports amounted to US$21.35 billion.

The non-oil and gas trade balance contributed a surplus of US$3.30 billion in December 2021, down from US$5.20 billion in November 2021. Meanwhile, the oil and gas balance still recorded a deficit of US$2.28 billion, although lower than the US$1.69 billion deficit in November 2021.

Observing the trend, Indonesia has experienced a surplus for twenty consecutive months since May 2020. This indicates an improving Indonesian economy.

The highest trade surplus occurred in October 2021, reaching US$5.73 billion. Furthermore, the surplus from January to December 2021 totaled US$35.34 billion, a 63.45% increase from the same period in 2020, which amounted to US$21.63 billion.

The largest contributors to the non-oil and gas trade surplus in December 2021 were the United States, the Philippines, and India. Non-oil and gas exports to the US reached US$2.64 billion, while imports were only US$944.8 million. As a result, Indonesia's non-oil and gas trade balance with the US showed a surplus of US$1.69 billion.

Indonesia's non-oil and gas exports to the Philippines totaled US$801.3 million, while imports were only US$128.8 million. Therefore, Indonesia's non-oil and gas trade surplus with the Philippines amounted to US$672.5 million.

Indonesia's non-oil and gas exports and imports with India were US$1.18 billion and US$640.1 million, respectively. Consequently, Indonesia's non-oil and gas trade surplus with India was US$548.1 million.