Indonesia: Trade Balance returned to positive figures in 2020 – UOB
|UOB Group’s Economist Enrico Tanuwidjaja and Haris Handy reviewed the latest trade balance figures in Indonesia.
Key Quotes
“Indonesia posted trade surplus of +USD2.1bn in December 2020, narrowed from November’s +USD2.6bn, as imports grew faster-than-expected by +14.0% m/m. Both exports and imports surged to their highest figure in a year. Exports grew by +14.6% y/y in December to USD16.5bn (vs. November’s +9.5%) following higher exports volume and price of Indonesia’s main commodities i.e., palm oil and coal. Meanwhile, Imports contracted less to USD 14.4bn, at -0.5% y/y in December (vs. November’s -17.5%), driven by higher imports of consumer and capital goods, indicating an uptick in domestic economic activity.”
“Entire year of 2020, Indonesia had a total trade surplus of +USD21.7bn, which is almost double the latest trade surplus in 2016 of +USD11.8bn and significantly higher than -USD3.6bn deficit seen in 2019. FY2020, exports decreased by -2.3% while imports fell deeper by -17.1%. Combinations of factors, such as lower global and domestic demand due to limitation of economic activities to contain COVID-19 spread, have put some pressure to Indonesia exports and imports performance.”
“The performance suggests that a significant narrower current account deficit (CAD) may be seen for 2020, in line with our CAD forecast of around -0.7% of GDP (vs. 2019’s -2.7%). For 2021, the pace of the CAD remained measured with our forecast at -2.0% of GDP; in light of higher imports due to gradual recovery in domestic demand, coupled with wider primary income deficit.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.