ECONOMIC PULSE: Trade Balance and Average Daily Wage June 26, 2018 167
Trade Balance – May 2018
Indonesia’s trade deficit narrowed to USD 1.52 bn May from USD 1.62 bn in previous month as the robust growth in imports was more than doubled that of exports. Exports in May rose 12.5% (Y/Y) to USD 16.1 bn, stronger than April’s 9%. O&G exports jumped 21.5 (Y/Y) while Non-O&G exports expanded 11.6% (Y/Y).
By volume, exports rose 16% (Y/Y) with O&G exports showed no growth compared to the same period last year. Non-O&G exports soared 17.4% (Y/Y), much higher than the 6.3% (Y/Y) rise in April. On a monthly basis, export volume expanded 7.5% despite sharp increase in O&G exports (+21.2%). Non-O&G exports rose 6.6% , rebounding from 9.9% in April.
China continues to be the main destination for Non-O&G exports with shipments to that country totaled USD 2.09 bn (+15.4% M/M) in May after sank 22.8% (M/M) in April. We also saw strong rebound in exports to the European Union and the U.S. which stood at +25.7% (M/M) and 10% (M/M) respectively.
Cumulatively, exports reached USD 74.9 bn (+9.6% Y/Y) during 5M18. In terms of volume, exports rose 13%(Y/Y), underpinned by Non-O&G exports (+14.2% Y/Y) while O&G exports declined 2.3% (Y/Y).
Imports skyrocketed 28.1% (Y/Y), slowing down a bit from April’s 34.7% as O&G imports shout up 57.2% (Y/Y) while Non-O&G imports booked 23.8 (Y/Y) increase. On a monthly basis, total imports rose 9.2% supported by 20.9% rise in O&G imports while Non-O&G imports gained 7.2%
Imports of consumption goods in May remained strong by rising 14.9% (M/M) after growing 25.9% (M/M). Imports on both raw materials and capital goods only increased 9% (M/M) and 6.6% (M/M) respectively.
For January – May 2018 period, imports reached USD 77.9 bn (+24.7%) compared to the same period last year driven primarily by Non-O&G imports (+25.9%). Crude oil imports exploded 55% (Y/Y) after soared 51.8% in January-April thanks to higher global crude oil prices.