August 2018 Oil and Gas Trade Balance Deficit Deepest Since 2015

Indonesia's oil and gas (migas) imports grew faster than its exports, resulting in the national oil and gas trade balance recording its deepest deficit in the last 44 months. Statistics Indonesia recorded a 28.31% increase in oil and gas imports for the January-August 2018 period, reaching US$19.76 billion compared to the same period the previous year. Meanwhile, exports only increased by 14.04% to US$11.41 billion.

Indonesia's oil and gas trade balance in August 2018 reached a deficit of US$1.66 billion, a 35.18% increase from the previous month. This deficit marks the 42nd consecutive month since March 2018. Cumulatively, from January to August 2018, the national oil and gas trade deficit reached US$8.35 billion, a surge of 54.78% compared to the same period the previous year. This amount is equivalent to 97.5% of the total oil and gas trade deficit for the whole of 2017.

The large oil and gas trade deficit, coupled with a decrease in the non-oil and gas trade surplus, increases the potential for an overall trade deficit this year. With the oil and gas deficit reaching US$8.35 billion in the first eight months of the year, and the non-oil and gas trade surplus only reaching US$4.27 billion, Indonesia's overall trade balance shows a deficit of US$4.09 billion.