With a US$161.3 million surplus in October, Indonesia’s trade balance reversed an earlier $163 million deficit in the previous month. From January to October of this year, Indonesia booked a $1.78 billion trade deficit, significantly lower than the $5.57 billion recorded over the same period last year.

Exports declined for 12 consecutive months, with a 6.13 percent year-on-year (yoy) contraction in October to US$14.93 billion. The manufacturing sector, which was responsible for three quarters of total exports last month, declined by 2.49 percent yoy to $11.34 billion. The sharpest drop in exports was recorded in the oil and gas sector, slumping 40.07 percent yoy to $920 million.

BPS head Suhariyanto said the decline in Indonesia’s exports was caused primarily by the sluggish growth of commodity prices while the volume of commodity exports increased.

“The volume [of commodity exports] still recorded an increase, but because of falling prices, particularly in coals, compared to the previous year, the value of our exports declined,” said Suhariyanto in Jakarta on Friday.

Global trade is expected to grow significantly slower at 1.2 percent this year down from 2.6 percent in previous estimates by World Trade Organization (WTO). Economies around the world are stagnating amid ongoing trade wars and heightened geopolitical risks, including Brexit uncertainties.

Indonesia’s economic growth rate hit the lowest level in more than two years in the third quarter of this year. Economists said contraction in imports indicated weaker domestic economic activities, from the manufacturing industry to consumer demand.

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