Export Improves Balance of Trade: Bank Indonesia

05 November, 2014 | Source: antara news

Jakarta (ANTARA News) - Bank Indonesia (BI) has estimated that an increase in export activity, in line with global economic recovery, can help to improve balance of trade, despite the continued oil and gas deficit.

BI spokesperson Peter Jacobs stated that Indonesias external balance continues to recover. This is reflected in its balance of trade that showed an improvement from a US$0.31 billion deficit in August to a US$0.27 billion deficit in September.

"The improvement in trade balance in September will contribute positively towards the current account in the third quarter of 2014," Jacobs explained here on Tuesday.

Furthermore, non-oil trade balance recorded a higher surplus than the previous month. It stood at US$0.76 billion in September, higher than the US$0.49 billion recorded in August.

Surplus of non-oil trade balance amounted to US$0.5 billion in September last year.

The increase in non-oil balance of trade was primarily supported by the rise in exports of mineral fuels, fats and animal/vegetable oil, rubber and rubber products, as well as that of manufactured goods such as electrical equipment and machinery.

The increase in non-oil exports in September was primarily due to high demand from developed countries such as the USA, Australia, Japan, Germany and France, as well as some emerging countries such as China, Singapore and South Korea.

The improvement in trade deficit was also reflected in the third quarter of 2014. It recorded a deficit of US$0.53 billion, a sharp decline from the deficit of US$2.21 billion in the second quarter of the year.

The decline in the deficit due to lower non-oil imports in Q3 of 2014 amounted to US$33.2 billion from US$35.9 billion in Q2.

This decline was more than that of non-oil exports, which reduced from US$36.71 billion in Q2 to US$36.17 billion in Q3.

Moreover, oil and gas deficit in the third quarter increased to US$3.5 billion from US$2.99 billion in the second quarter of 2014.

"Bank Indonesia will monitor global and domestic risks that may affect the prospects of the current account deficit and external resistance," Jacobs affirmed.(*)

 

The Indonesian government plans to issue savings sukuk (Islamic bonds), series ST007, to expand the base of retail investors in the domestic financial market and finance green projects in the state budget (APBN).
President Joko Widodo recently signed a regulation specifying the procurement and immunization schedule for the COVID-19 vaccine for Indonesia, which has been battling the deadly disease since March 2 this year.
President Joko Widodo on Wednesday said the coronavirus pandemic has reminded the nation and the state of the importance of science and technology.
Indonesian Foreign Affairs Minister Retno Marsudi offered her condolences and sympathies to the families of the victims of the explosion that rocked Beirut in Lebanon on Tuesday evening.
Indonesia is working with South Korea to develop a vaccine for the novel coronavirus disease, in addition to collaborating with China.
Indonesia′s economy will start to open and recover from the COVID-19 crisis in August this year, the World Bank′s Country Director for Indonesia, Satu Kahkonen, stated on Thursday.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu