Imports Down 13%, September 2018 Trade Balance Shows Surplus

Indonesia's Central Statistics Agency (BPS) reported that the value of imports in September 2018 decreased by 13.18% to US$14.6 billion compared to the previous month. Meanwhile, the value of exports fell by only 6.58% to US$14.83 billion. As a result, Indonesia's trade balance recorded a surplus for the first time in three months.

Indonesia's trade balance in September 2018 recorded a surplus of US$227.1 million. However, cumulatively for the January-September period this year, it still recorded a deficit of US$3.78 billion, or approximately Rp 57.48 trillion at an exchange rate of Rp 15,200 per US dollar. In contrast, during the January-September period of the previous year, Indonesia's trade balance recorded a surplus of US$10.86 billion.

The government's measures to curb imports by raising taxes on imported goods have managed to reduce the national trade deficit. The decrease in imports was driven by a contraction in non-oil and gas imports of 10.52% to US$12.32 billion from US$13.77 billion previously. Meanwhile, oil and gas imports decreased by 25.2% to US$2.28 billion from US$3.05 billion in the previous month. Cumulatively, the value of Indonesian imports for the January-September period grew by 23.33% to US$138.77 billion. Meanwhile, the value of Indonesian exports in the January-September period of this year grew by 9.41% to US$134.97 billion compared to the same period the previous year.