China Contributes Deepest Deficit To The May 2024 Trade Balance

Deputy for Statistics Production of the Central Statistics Agency M Habibullah. (Photo: Doc. ANTARA)

JAKARTA The Central Statistics Agency (BPS) reported that Indonesia's trade performance with China recorded a deficit in May 2024 of 1.32 billion United Nations (US) dollars.

Deputi Bidang Statik Produksi BPS M Habibullah menyampaikan Indonesia mengalami defist perdagangan dengan beberapa negara mitra perdagangan terutama China, Australia dan Thailand.

"Indonesia is also experiencing a trade deficit with several countries and the deepest three of them are China with 1.32 billion US dollars," he said at a press conference, Wednesday, June 19.

In addition, Habibullah said that not only China contributed a deep deficit but there was also Australia amounting to US $ 0.54 billion and Thailand $ 0.32 billion.

Habibullah said the deepest deficit with China came from trading in machine and mechanical equipment and its parts or HS 84 code, electric machinery and equipment and parts of the HS 85 code, as well as plastic and goods from plastic or code HS 39.

Despite the deficit, Habibullah said, Indonesia's trade balance has also continued its surplus trend for 49 consecutive months since May 2020.

He explained that the surplus in May 2024 mainly came from Indonesia's trade with India which scored a profit of up to 1.55 billion US dollars.

Meanwhile, the trade surplus with the United States (US) amounted to 1.21 billion US dollars and Japan amounted to 0.74 billion US dollars.

India's largest surplus, driven by mineral fuel commodities code HS 27, precious metals and jewelry code HS 71, accreting metal and ash code HS 26, he explained.

Habibullah conveyed that Indonesia's trade balance in May 2024 experienced a surplus of 2.93 billion US dollars.

The trade balance surplus occurs because the export value is greater than the import value.

"The May 2024 surplus is more supported by a surplus, mainly from the non-oil and gas sector of 4.26 billion US dollars, with commodities contributing to the surplus, especially mineral fuel (HS 27), vegetable animal fat and oil (HS 15), iron and steel (HS 72)," he explained.

Habibullah conveyed that the non-oil and gas trade balance surplus in May 2024 was lower than in May 2024 but higher than in May 2023.

However, the oil and gas commodity trade balance was recorded at a deficit of 1.33 billion US dollars with the main contributors, namely crude oil andmiyak.

Meanwhile, the trade balance deficit in May 2024 is lower than last month and the same month the previous year.