Indonesia’s trade balance surplus decreased to US$2.39 billion in June 2024, a reduction of $0.54 billion from the previous month’s $2.92 billion, according to Indonesia's Central Statistics Agency (BPS). This marks a 30.72% year-on-year decline from the $3.45 billion surplus recorded in June 2023.  

Despite the decrease, BPS Acting Head Amalia Adininggar Widyasanti highlighted that the country has maintained a trade surplus for 50 consecutive months since May 2020, driven by non-oil and gas commodities, which contributed $4.403 billion.  

BPS reported that Indonesia’s export value in June 2024 reached $20.84 billion, a 6.65% decrease from May 2024. The decline was attributed to a significant drop in non-oil and gas exports, particularly in metal ores, slag, and ash, which plummeted by 98.32%. Precious metals and jewelry exports also fell by 45.76%, while nickel and related products declined by 25.20%. 

Non-oil and gas exports in June 2024 were $19.61 billion, a 6.20% decrease from May 2024 but a 1.40% increase from June 2023. Cumulatively, from January to June 2024, Indonesia’s export value reached $125.09 billion, a 2.76% decrease compared to the same period in 2023. Non-oil and gas exports for the same period were $117.19 billion, a 2.99% decline. 

On an annual basis, June 2024 saw a 1.17% increase in export value compared to June 2023. The largest non-oil and gas export destinations were China ($4.65 billion), the United States ($1.97 billion), and India ($1.84 billion), contributing 43.13% collectively. Exports to ASEAN and the European Union (27 countries) were $3.62 billion and $1.21 billion, respectively. The top export provinces in the first half of 2024 were West Java ($17.99 billion), East Kalimantan ($12.57 billion), and East Java ($12.20 billion). 

Meanwhile, imports in June 2024 totaled $18.45 billion, with the largest share coming from China, especially non-oil and gas products. The import value decreased by 4.89% from May 2024 but increased by 7.58% year-on-year. 

Oil and gas imports were $3.27 billion in June 2024, a 19.01% increase from May 2024 and a 47.17% rise from June 2023. Non-oil and gas imports amounted to $15.18 billion, down 8.83% from May 2024 but up 1.69% from June 2023. 

In terms of import origins, the largest suppliers of non-oil and gas imports were China ($32.45 billion or 35.41%), Japan ($6.47 billion or 7.06%), and Thailand ($4.87 billion or 5.31%). Imports from ASEAN countries reached $16.32 billion, and from the European Union $5.89 billion. By usage, capital goods imports declined by $74.6 million, while consumption goods and raw materials increased by $655.4 million and $333.2 million, respectively. 

Bank Permata's Chief Economist had previously predicted a June 2024 trade surplus of $4.05 billion, anticipating a more significant contraction in imports compared to exports due to declining global and domestic manufacturing activities. The manufacturing sector's weakness, influenced by a depreciating rupiah, led to a substantial drop in imports, as reflected by the decline in Indonesia’s manufacturing PMI to 50.7 in June 2024. 

This content is published in partnership with Katadata 

Original article here