The Jakarta Post
Indonesia’s trade deficit may continue continue in September with the balance of trade reaching US$1.5 billion, according to an economist from the Institute for the Development of Economics and Finance (Indef).
The country will likely continue to suffer from protectionist measures carried out by its trading partners, such as India, economist Bhima Yudhistira said as quoted by kontan.co.id.
In 2017, the Indian market accounted for 24 percent of Indonesia’s total palm oil exports.
In February, however, the Indian government raised the import tax for crude palm oil to 44 from 30 percent, and the tax for refined palm oil products to 54 from 40 percent.
Indonesia’s oil imports has also contributed to the deficit, with many of its infrastructure projects increasing demand for imported raw materials.
Bhima further predicted that Indonesia’s overall trade deficit could hit $9.5 billion, with demand for imports increasing nearing the Christmas and New Year’s holiday.
Statistics Indonesia (BPS) is set to announce Indonesia’s trade balance on Monday.
In August, Indonesia recorded a trade deficit of $1.02 billion, mostly as a result of oil and gas imports. The figure is half of the $2.03 billion deficit recorded in July, Indonesia’s highest in five years.