Indonesia reduces trade deficit

Indonesia continued to suffer a monthly trade deficit in May, but it managed to reduce its size to US$485.9 million from $764.7 million in April, the Central Statistics Agency (BPS) said Monday.

Exports rose to $16.72 billion from $16.17 billion, while imports grew to $17.21 billion from $16.94 billion during the same period, the agency said.

Indonesia’s monthly trade balance went into the red for the first time in almost two years due to a combination of slower export growth and rapid increase in imports.

The statistics agency said the trade deficit had been reduced in May thanks to higher non-oil gas exports and mineral fuels (particularly coal) and cooking oils.

Imports grew slower, with machinery and mechanical equipment accounting for the largest increase. Oil and gas imports, which account for 23 percent of total imports, also grew significantly. (tas/nvn)