Indonesia: Trade surplus shrinks markedly in May - UOB

UOB Group's Economist Enrico Tanuwidjaja and Junior Economist Agus Santoso assess the latest trade balance figures in Indonesia.

Key Takeaways

Trade surplus in May eased sharply to just USD0.4bn from almost USD4bn in Apr, the lowest position in 2023-to-date as imports rose sharply. The easing external demand from Indonesia’s main trading partners and lower commodity prices underpinned the lower trade surplus in May. 

Oil and gas (OG) exports contracted by similar magnitude of around 12.1% y/y in May as it was in Apr, while non-oil and gas (non-OG) exports increased by 1.9%, making a turnaround from Apr’s contraction of 30.4%. 

OG imports still contracted by 6.5% y/y, but much lower than previous month's contraction of 22.5%, while non-OG imports grew by 18.9% in May, much higher than Apr’s contraction of 22.3%.