Indonesia’s June trade surplus smallest in 4 months as exports rose less than expected
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The value of shipments from Indonesia has gradually declined from its peak during a global commodity boom in 2022.
PHOTO: REUTERS
JAKARTA – Indonesia’s trade surplus narrowed in June to its smallest in four months as exports rose less than expected amid strong import growth, data from its statistics office showed on July 15, after two big copper miners halted shipments.
The June surplus was US$2.39 billion (S$3.21 billion), falling short of economists’ median forecast of US$2.98 billion in a Reuters survey, and May’s revised surplus of US$2.92 billion.
The value of shipments from Indonesia, the biggest economy in South-east Asia, has gradually declined from its peak during a global commodity boom in 2022, amid softening prices.
Several economists said the June data remained in line with market expectations of a trend of a narrower goods trade surplus in 2024, which will widen the current account deficit and may pressure the rupiah’s exchange rate.
“We anticipate a widening current account deficit, in line with the declining trade surplus, primarily due to weakening global demand for export products,” said economist Hosianna Situmorang from Bank Danamon.
June exports rose 1.17 per cent on a yearly basis to US$20.84 billion, less than the 5.46 per cent expected in the Reuters poll.
However, a drop of 16 per cent in June shipments of mining products dampened overall export growth, which included falling shipments of coal, steel and copper.
Copper miners Freeport Indonesia, a unit of American mining giant Freeport-McMoRan, and Amman Mineral Internasional, could not ship any copper concentrate to overseas buyers in June as the Indonesian government was still working on extending their export permits.
Jakarta was supposed to stop all copper concentrate exports by the end of May, but the authorities have promised a dispensation until the end of 2024 for Freeport and Amman, whose refining smelters have yet to reach full capacity.
Freeport’s new permit was issued in July, but Amman’s permit is still being processed.
June imports were worth US$18.45 billion, up 7.58 per cent on a yearly basis, compared with the poll forecast of 6.55 per cent.
The rise in imports of fuel, as well as raw materials and consumer goods, drove overall growth.
State energy firm Pertamina ramped up tenders for fuel purchase in June after a fire at one of its production units at its Balikpapan refinery.
It sought deliveries in June of products such as jet fuel and petroleum. REUTERS