Trade Balance Shows US$63.5 Million Deficit in July 2019

Indonesia's trade balance in July 2019 recorded a deficit of US$63.5 million. In June, the trade balance was still in surplus at US$297.3 million. The Central Bureau of Statistics (BPS) noted that the deficit in Indonesia's trade balance was due to imports reaching US$15.514 billion, while exports were only US$15.45 billion.

Furthermore, Indonesia's export performance in July 2019 decreased by 5.12% (yoy) from US$16.2 billion in July 2018. The year-on-year decline in exports was caused by a 6.88% decrease in non-oil and gas exports, from US$14.9 billion to US$13.8 billion. Meanwhile, oil and gas exports increased by 13.35% to US$1.6 billion. On a monthly basis (mom), Indonesian exports in July 2019 increased by 31.02% due to the momentum of Ramadan and the long holiday.

Imports also experienced a year-on-year decrease and a month-on-month increase. Year-on-year, imports fell by 15.21%, while month-on-month imports increased sharply by 34.96%. The increase in imports was driven by oil and gas imports, which grew by 40.72% (mom) from US$9.8 billion in June 2019 to US$13.8 billion in July 2019.