Indonesia's Trade Deficit Reaches Historic Low in November 2018

The Central Bureau of Statistics (BPS) released data showing that Indonesia's total export value from January to November 2018 reached US$165.81 billion, while the import value during the same period reached US$173.32 billion. As a result, the national trade balance for the January-November period showed a US$7.52 billion deficit, equivalent to Rp 109 trillion at an exchange rate of Rp 14,500 per US dollar.

This trade deficit has the potential to be the largest in Indonesian history, especially since a large trade deficit is still expected at the end of the year. The previous largest trade deficit was recorded in January-December 2013, reaching US$4.1 billion. The end of the golden age of commodity exports and the increasing demand for imports, particularly oil and gas, have caused the national trade surplus to decline year after year, resulting in a deficit this year.

The large trade deficit was triggered by the oil and gas deficit from January to November this year, which reached US$12.15 billion. Indonesia's oil and gas exports from January to November 2018 amounted to only US$15.66 billion, while oil and gas imports during the same period reached US$27.81 billion. Meanwhile, the non-oil and gas trade balance recorded a surplus of US$4.64 billion, with exports reaching US$150.15 billion and imports reaching US$145.51 billion.