Indonesia's Trade Balance Continues Positive Trends, Airlangga Reveals A 49-Month Surplus In A Row

JAKARTA - The government continues to strengthen various efforts to encourage an increase in national exports, one of which is through the establishment of the National Export Increase Task Force (Satgas) on September 20, 2023.

In the midst of the current global economic condition, Indonesia's export performance was able to show good performance where in May 2024 the value of Indonesia's exports reached 22.33 billion US dollars, an increase of 13.82 percent mtm or 2.86 percent yoy.

This achievement consists of oil and gas exports of 1.42 billion US dollars and non-oil and gas exports of 20.91 billion US dollars. Thus, oil and gas exports increased by 5.12 percent (mtm) and non-oil and gas exports increased by 14.46 percent (mtm).

Cumulatively from January to May 2024, Indonesia's exports have reached 104.25 billion US dollars, a decrease of 3.52 percent (ctc).

Indonesia's trade balance in May 2024, a surplus of 2.93 billion US dollars, is still continuing its surplus trend of 49 consecutive months. The trade balance surplus is supported by a surplus of the non-oil and gas sector of 4.26 billion US dollars, but is induced by a deficit in the oil and gas sector of 1.33 billion US dollars," said Coordinating Minister for Economic Affairs Airlangga Hartarto, Thursday, June 20.

Indonesia's increase in non-oil and gas exports in May 2024 compared to April 2024 was supported by increased export value to most major destination countries, such as China, the United States, and Japan. Indonesia's exports to ASEAN and the European Union have also increased.

The increase in manufacturing activities of several major Indonesian trading partners indicates an increase in absorption of Indonesian export products. This is reflected in the increase in the activity of PMI in Chinese manufacturing, United States, ASEAN and the European Union.

Of the 10 commodities with the largest non-oil and gas export value, almost all commodities have increased, with the largest increase in electric machinery and equipment and parts of US$263.6 million or 26.66 percent aik. Meanwhile, only 268.0 million decreased by 14.32 percent.

According to the sector, the export performance of the Processing industry sector increased by 16.40 percent mtm, Mining and Others increased by 6.26 percent mtm, Agriculture, Forestry, and Fisheries increased by 32.45 percent mtm, and oil and gas increased by 5.12 percent mtm.

"Meanwhile, the import value in May 2024 reached 19.40 billion US dollars, up 14.82 percent mtm but down 8.83 percent yoy, consisting of non-oil and gas imports of 16.65 billion US dollars, up 19.70 percent mtm but down 8.23 percent yoy and oil and gas imports of 2.75 billion US dollars, down 7.91 percent mtm and 12.34 percent yoy," said Airlangga.

Cumulatively, Indonesia's total imports from January to May 2024 reached 91.19 billion US dollars, down 0.42 percent (ctc). The largest import performance is based on the classification of the use of goods, namely Baku/auxiliary Materials, followed by Capital Goods, then Consumption Goods.

The three countries with the largest increase in non-oil and gas imports are China, the United States, and Thailand. Meanwhile, the Netherlands became the country with the deepest decline in imports of non-oil and gas commodities.