JAKARTA- Indonesia posted a $2.01 billion trade surplus in January, smaller than forecast, as exports dropped more than expected amid sluggish global trade.
A median forecast by 18 analysts surveyed by Reuters had expected a trade surplus of $2.99 billion last month. The January surplus was also smaller compared to $3.30 billion in December.
Exports by Southeast Asia’s biggest economy dropped 8.06 percent year-on-year in January to $20.52 billion as shipments of its top commodities such as coal and palm oil shrunk. The poll had expected a 2.7 percent drop in exports.
The shipment value of palm oil, of which Indonesia is the world’s biggest producer, declined by 11.54 percent year-on-year in January.
Exports are seen remaining weak for the rest of the year as the economies of Indonesia’s major trading partners are expected to ease.
“As the economies of major trading partners continued to weaken, the moderation in exports became more pronounced,” said Irman Faiz, an economist with Bank Danamon,
He added that the narrowing trade surplus until year-end could push the 2024 current account deficit to 1 percent of GDP from 0.4 percent of GDP last year.
The central bank had estimated the 2024 current account deficit between 0.1 percent -0.9 percent of GDP.
Imports grew 0.36 percent in January to $18.51 billion against the polled expectation of a 1.3 percent rise.
Meanwhile, Indonesia’s President Joko Widodo on Thursday said rice prices in the country would decrease slightly in one or two weeks, as the country awaits incoming supplies.
His statement comes as the government sought to reassure consumers there were adequate rice stocks in Indonesia amid increasing sale restrictions in mini markets and supermarkets since the end of 2023.
Jokowi, as the president is commonly known, said rice prices were up due to tight supply caused by disrupted distribution.
“I think in one or two weeks, the prices of rice will go down a bit, as we wait for harvest,” he said in a statement.
