BI Optimistic Trade Balance Surplus Can Strengthen External Resilience

Bank Indonesia (doc BI)

JAKARTA - The Central Statistics Agency (BPS) noted that Indonesia's trade balance was in surplus in November 2023 of US$2.41 billion, although lower than the surplus in October 2023 of US$3.47 billion. Despite the declining trade balance surplus, Bank Indonesia (BI) still views this development as positive to support the resilience and maintain external stability of the Indonesian economy further. Executive Director, Head of the BI Communications Department Erwin Haryono conveyed that in the future, Bank Indonesia will continue to strengthen policy synergies with the Government and other authorities to continue to improve external resilience and support the national economic recovery. "The November 2023 trade balance surplus mainly comes from continuing non-oil and gas trade balance surplus (non-oil and gas)," he explained in his statement. Even lower than the previous month's achievement, the non-oil and gas trade balance in November 2023 still recorded a surplus of 4.62 billion US dollars. This development is in line with the strong remaining non-oil and gas exports which reached 20.72 billion US dollars. Erwin conveyed the positive performance of these non-oil and gas exports in addition to being supported by the continued strong exports of natural resource-based commodities (SDA) such as palm oil or Crude Palm Oil (CPO), coal, precious metals, and lead, also supported by machine and electric equipment manufacturing products.

Based on destination countries, non-oil and gas exports to China, the United States, and India remain the main contributors to Indonesia's exports. Meanwhile, non-oil and gas imports increased in line with the continued improvement in economic activity. Meanwhile, the oil and gas trade balance in November 2023 recorded a deficit of 2.21 billion US dollars. This is in line with the increase in oil and gas imports amid declining oil and gas exports.