Indonesia's Trade Balance Poised for Another Surplus in 2017

Indonesia's trade balance is projected to record another surplus in 2017. This is because the trade balance during the January-May period has recorded a surplus of US$5.9 billion, equivalent to Rp 78.4 trillion. This figure surged 95.29 percent compared to the same period the previous year, which was US$3 billion.

Indonesia's export value during January-May 2017 reached US$68.26 billion, up 19.94 percent from the same period the previous year, which was US$56.92 billion. Meanwhile, the import value in January-May 2017 only reached US$62.39 billion, also up 15.71 percent from the same period the previous year, which was US$46.97 billion.

The trade balance had recorded a deficit in 2012-2014 due to the global financial crisis and the slow recovery of the European economy. This was further exacerbated by the fall in prices of Indonesia's main commodities due to sluggish global demand. However, Indonesia's trade balance managed to record a surplus again in 2015. Unfortunately, the improvement in the trade balance was not due to increased exports, but rather to a larger decrease in imports than in exports.