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Indonesia’s trade balance maintains positive trend with 49 consecutive months of surplus
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T
he government continues to strengthen various efforts to boost national exports, including through the establishment of the National Export Enhancement Task Force on Sept. 20, 2023. Amid the current global economic conditions, Indonesia's export performance has shown good results, with the country’s export value in May 2024 reaching US$22.33 billion, an increase of 13.82 percent month-to-month (mtm) or 2.86 percent year-on-year (yoy).
This achievement consists of oil and gas exports amounting to US$1.42 billion and non-oil and gas exports amounting to US$20.91 billion. 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 reached US$104.25 billion, experiencing a decline of 3.52 percent (cumulative-to-cumulative, ctc).
“Indonesia's trade balance in May 2024 recorded a surplus of US$2.93 billion, continuing the surplus trend for 49 consecutive months. The trade balance surplus was supported by a non-oil and gas sector surplus of US$4.26 billion, although it was reduced by a deficit in the oil and gas sector of US$1.33 billion,” said Coordinating Economic Minister Airlangga Hartarto, as chairman of the Advisory Team of the National Export Enhancement Task Force.
The increase in Indonesia's non-oil and gas exports in May 2024 compared to April 2024 was supported by the rising export value to most major destination countries, such as China, the United States and Japan. Additionally, Indonesia's exports to ASEAN and the European Union also experienced an increase.
The rise in manufacturing activity among several of Indonesia's main trading partners indicates an increased absorption capacity for Indonesian export products. This is reflected in the increased PMI manufacturing activity in China, the United States, ASEAN and the EU.
Out of the ten commodities with the largest non-oil and gas export values, almost all commodities experienced an increase, with the largest increase in machinery and electrical equipment and parts thereof, amounting to US$ 263.6 million (up 26.66 percent). Meanwhile, the only commodity that experienced a decline was animal/vegetable fats and oils, amounting to US$ 268.0 million (down 14.32% percent).
By sector, the export performance of the processing industry 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.
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“Meanwhile, imports in May 2024 reached US$19.40 billion, up 14.82 percent mtm but down 8.83 percent yoy, consisting of non-oil and gas imports amounting to US$16.65 billion, up 19.70 percent mtm but down 8.23 percent yoy, and oil and gas imports amounting to US$2.75 billion, down 7.91 percent mtm and 12.34 percent yoy,” Airlangga said.
Cumulatively, Indonesia's total imports from January to May 2024 reached US$91.19 billion, down 0.42 percent ctc. The largest import performance by category of goods usage was raw materials/auxiliary materials, followed by capital goods, then consumer goods.
The three countries with the largest increase in non-oil and gas imports were China, the US and Thailand. Meanwhile, the Netherlands experienced the deepest decline in non-oil and gas commodity imports.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
