According to the latest trade data published by the Indonesian Statistics Bureau, the country posted a much bigger-than-expected trade deficit in January.
Indonesia reported a trade deficit of $0.87 billion vs. $0.27 billion expected and $0.03 billion previous. The imports and exports came in at -4.78% and -3.71% respectively vs. -5.66% and +1.19% expectations and -5.62% and +1.28% respective priors.
The median forecast from economists was for a $0.27 billion trade deficit last month, the Reuters poll showed last week. Indonesia’s trade deficit to widen in January – Reuters poll
FX Implications
USD/IDR remains little changed on downbeat Indonesian Trade Balance data, keeping the rates near daily lows of 13,675. At the press time, the cross trades 0.15% higher at 13,685.
About Indonesia’s Trade Balance
The Trade Balance released by Statistics Indonesia is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. If a steady demand in exchange for Indonesian exports is seen, the Rupiah will receive a positive (or bullish) effect, while a low reading is seen as negative (or bearish).
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