Indonesia’s Statistics Agency (BPS) recorded a trade surplus of US$3.45 billion (Rp 51.6 trillion) in June 2023, extending Indonesia’s positive balance in international trade that has lasted since May 2020. 

Indonesia recorded an export value of $20.61 billion in June 2023, which is a decrease of 5.08% compared to the previous month. The Ministry of Trade said the decline was a result of declining commodity prices and the decreased demand from trading partner countries triggered by global inflationary pressures following Russia’s invasion of Ukraine. 

On the other hand, Indonesia’s June 2023 import saw an even steeper decline, at $17.15 billion or 19.40% lower compared to the previous month. Oil and gas imports went down 29.12% and non-oil and gas imports fell by 17.73% (MoM). 

The statistics largely went past Reuter’s forecasts, which had expected exports to contract by 18.9%, imports to 7.75%, and the surplus to be at $1.35 billion. The much deeper slide in import values also led to a slight surplus increase in June compared to May 2023 of only $0.44 billion. 

Cumulatively, Indonesia's trade balance recorded a surplus of $19.93 billion. This surplus figure is lower than the value in the first half of 2022, which reached $24.99 billion. 

In response to the decline in exports and imports, Indonesia’s Trade Minister Zulkifli Hassan said the government would continue to monitor global economic conditions and make the necessary adjustments to keep the domestic economy growing. 

"Although the trade balance still posted a surplus in the first semester of this year, the decline in surplus compared to the same semester last year requires extra attention and handling from all parties. The Ministry of Trade will focus on accelerating the increase in non-oil and gas exports, including to non-traditional markets," said Trade Minister Zulkifli Hasan in a press release from his ministry. 

The BPS data reveals that non-oil and gas commodities of $4.41 billion propped up the June 2023 surplus. Commodities in these sectors include mineral fuels, vegetable and animal fats and oils, and iron and steel. The oil and gas sector, which include commodities such as crude oil and its derivatives, saw a deficit of $0.96 billion  

Based on trading partner countries, Indonesia's trade surplus in June 2023 was driven by several major trading partner countries. For example, India contributed a surplus value of $1.12 billion through exports of animal or vegetable fats and oils, mineral fuels and coal, and precious metals, jewelry, and gems. Meanwhile, countries contributing to the trade deficit in June 2023 were Australia ($0.52 billion), Thailand ($0.20 billion), and South Korea ($0.16 billion).