Indonesia's Trade Balance Shows A Surplus Trend Amid A Global Slowdown

JAKARTA Indonesia's trade balance in May 2024 again recorded a surplus of 2.93 billion US dollars and at the same time extended Indonesia's trade balance surplus trend to 49 consecutive months since May 2020.

Head of the Fiscal Policy Agency of the Ministry of Finance, Febrio Kacaribu, said that Indonesia's trade performance recorded a surplus in the midst of slowing global economic activity.

"This provides indications that our economic resilience is quite strong, but we must remain vigilant and continue to strengthen policy support in order to encourage sustainable growth," he said in his statement, Thursday, June 20.

Meanwhile, Indonesia's export value in May 2024 was recorded at 22.33 billion US dollars, an increase of 2.86 percent (yoy), driven by an increase in non-oil and gas exports by 2.50 percent (yoy) and oil and gas exports by 8.44 percent (yoy).

Febrio said the increase in non-oil and gas exports was mainly supported by an increase in the majority of major commodities such as iron and steel, electric machinery and equipment, as well as nickel and goods. Meanwhile, the increase in oil and gas exports was driven by an increase in exports of crude and natural gas amid the decline in exports of oil products.

Cumulatively, Indonesia's export value from January to May 2024 was recorded at 104.25 billion US dollars with the largest export destination countries to China, followed by the United States, India, and Japan.

Meanwhile, Indonesia's import value in May 2024 was recorded at 19.40 billion US dollars, down 8.83 percent (yoy), driven by a decrease in the majority of major imported commodities such as vehicles and their parts, iron and steel, machinery and mechanical equipment, as well as electric machinery and equipment.

Meanwhile, based on the use of goods, the decline in imports occurred in consumer goods, raw materials/auxiliaries, and capital goods of 16.19 percent (yoy), 7.51 percent (yoy), and 10.13 percent (yoy) respectively. However, despite experiencing a decline in value, the volume of imports in May 2024 was recorded to have increased by 2.54 percent (yoy).

"The government will continue to monitor the impact of the global slowdown on national exports, as well as prepare anticipatory steps through impetus to the sustainability of natural resource downstreaming, increasing the competitiveness of national export products, and diversifying key trading partners," closed Febrio.