According to the latest trade data published by the Indonesian Statistics Bureau, the country posted a much smaller-than-expected trade deficit in December.
Indonesia reported a trade deficit of $-0.03 billion vs. $-0.47 billion expected and $-1.33 billion previous. The imports and exports came in at -5.62% and +1.28% respectively vs. -6.3% and -3.03% expectations and -9.24% and -5.67% respective priors.
The median forecast from economists was for a $0.47 billion trade deficit last month, the Reuters poll showed last week. Indonesia to post smaller trade deficit in December – Reuters poll
FX Implications
USD/IDR stalls its recovery from 23-month lows on upbeat Indonesian Trade Balance data, sending the rates back below the 13,700 mark. At the press time, USD/IDR pares gains to trade at 13,695, still up +0.24% on the day.
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).
Share
