North Sumatra's Trade Balance Until May 2022 Still In Surplus Despite Weakening Exports

Photo Illustration ANTARA

MEDAN - North Sumatra's foreign trade balance as of May 2022 could still have a surplus of US$230.233 million, even though exports fell sharply to 40.99 percent.

Head of the Central Statistics Agency (BPS) of North Sumatra, Nurul Hasanudin in Medan, Friday, said that in May the value of North Sumatra's exports fell quite significantly from April.

In May, North Sumatra's export value was US$761.86 million from April's US$1.29 billion.

The decline in the value of exports in May was due to the fall in foreign exchange from the category of animal/vegetable fats and oils.

North Sumatra's export value of animal/vegetable fats and oils in May fell 68.76 percent from April.

"Although the export value in May fell by 40.99 percent, North Sumatra's trade balance that month was still in surplus," he said.

The surplus is of course encouraging because it is hoped that North Sumatra's exports in 2022 will be above 2021.

North Sumatra's export value from January to December 2021 reached 11.874 billion US dollars and recorded the highest achievement since 2015.

Moreover, he said, in 2022, exports of several classes of North Sumatran goods such as various chemical products will skyrocket.

BPS noted, in total, North Sumatra's largest exports were still to the People's Republic of China, the United States and Japan.

Secretary of the Association of Indonesian Palm Oil Entrepreneurs (Gapki) of North Sumatra, Darma Sucipto, said that CPO exports in the last few months had been somewhat disrupted.

Disruption due to the ban on exports of crude palm oil (CPO) because the government is trying to suppress domestic cooking oil prices.

According to Darma, CPO exports were still disrupted until June because demand and export prices fell amidst Indonesia's opening of export faucets.

"If the volume and selling prices fall as they are today, the foreign exchange will also weaken," he said.