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Economist Enrico Tanuwidjaja and Haris Handy at UOB Group reviewed the latest trade balance results in Indonesia.

Key Quotes

“Indonesia posted another month of trade surplus of USD3.3bn in July 2020 (the highest trade surplus since August 2011 at USD3.6bn), as domestic demand for imports stay subdued amidst the COVID-19 pandemic. July’s Imports fell by 32.5% y/y vs. -6.4% in the previous month as imports of consumer goods and raw-auxiliary goods remained in contraction zone. Meanwhile, exports dropped by 9.9% y/y in July vs. +1.9% in June. Nevertheless, exports performance improved on a month-on-month basis in July (rose 14.3% m/m) on the back of easing social restriction, higher exports of agriculture products, as well as higher outbound shipments of oil & gas.”

“Indonesia’s exports in July were valued at USD13.7bn, with the non-oil and gas exports amounting to USD13.0bn (July’s -5.9% y/y vs. June’s +3.5%). Meanwhile, oil and gas exports contracted by 49.7% y/y in July vs. -22.9% in June. The largest increase in non-oil and gas exports for July (compared to June) was the exports of precious metal, jewelry, and gems (HS-71, +USD452.7mn), while the largest decline occurred in the exports of ores, slag, and ash (HS-26, -USD100.5mn).”

“Import level in July was recorded at USD10.5bn, with the non-oil and gas imports amounting to USD9.5bn (July’s -31.0% y/y vs. June’s +3.1%). Meanwhile, oil and gas imports declined by 45.2% y/y in July vs. June’s -60.5%. The largest increase in non-oil and gas imports for July (compared to June) was the imports of electrical machinery and equipment (HS-85, +USD220.9mn) while the largest decrease occurred in the imports of vehicles and parts (HS-87, -USD157.9mn).”