Tuesday, 16 July 2019 | 05:14 WIB

Indonesia’s Trade Balance for May 2019 Yields Surplus of US$0.21 Billion

Indonesia's Trade Balance for May 2019 Yields Surplus of US$0.21 Billion (special)

JAKARTA, NETRALNEWS.COM - Indonesia's trade balance in May 2019 recorded a surplus of US $ 0.21 billion, improved from the condition of the previous month which posted a deficit of US $ 2.28 billion. This was conveyed by Onny Widjanarko, Executive Director of the Bank Indonesia Communication Department, in an official statement on Monday (6/24/2019).

"The trade balance surplus was mainly due to the non-oil and gas trade balance surplus and the decline in the oil and gas trade balance deficit," he explained.

He said, the non-oil and gas trade balance surplus was supported by rising non-oil and gas exports and declining non-oil and gas imports. Meanwhile, the declining oil and gas trade deficit was influenced by the increase in oil and gas exports and the decline in oil and gas imports.

The May 2019 non-oil and gas trade balance experienced a surplus of US $ 1.19 billion, after a deficit of US $ 0.79 billion in the previous month.

On the one hand, this positive development was influenced by an increase in non-oil and gas exports, namely from US $ 12.37 billion in April 2019 to US $ 13.63 billion. "The increase mainly occurs in animal / vegetable oil and fat components, jewelry / gems, and mineral fuels," explained Onny.

On the other hand, non-oil and gas imports were recorded at 12.44 billion US dollars, down 0.72 billion US dollars (mtm) compared to imports in the previous month.

"The decline in non-oil and gas imports mainly occurred in machinery and electrical equipment, iron and steel, as well as machinery / mechanical aircraft," he said.

Meanwhile, the oil and gas trade balance recorded a deficit of US $ 0.98 billion in May 2019, improving compared to the deficit in the previous month of US $ 1.49 billion. This improvement was supported by an increase in oil and gas exports, from US $ 0.74 billion in April 2019 to US $ 1.11 billion in May 2019.

"The increase was mainly driven by the gas export component in line with the increase in export volume, amid the decline in gas export prices," Onny said.

Meanwhile, oil and gas imports declined from US $ 2.24 billion to US $ 2.09 billion in May 2019. The decline in oil and gas imports mainly occurred in oil and gas products, in line with the declining export volume of both components.

He added, Bank Indonesia assessed that the trade balance surplus in May 2019 had a positive impact on the outlook for the 2019 current account, which is predicted to have a deficit in the range of 2.5% to 3.0% of GDP.