Exports Continues to Recover while Imports Fall Deeper in September

Economic Research	18 October 2016
Indonesia
Economic Highlights
Exports Continues to Recover while Imports Fall Deeper in September Indonesia’s exports contracted by a smaller magnitude of 0.6% y-o-y in September, from -0.7 in August. This was driven by a smaller decline in oil product exports, on account of a recovery in oil prices. Imports, meanwhile, contracted by a larger magnitude of 2.3% y-o-y in September, from -0.1% in August due to declines in crude oil and non-oil & gas imports. In September, the trade account continued to record a surplus of USD1.2bn, the highest level this year. This leads to a higher trade surplus in 3Q 2016, suggesting that the country’s current account deficit in the balance of payments could have improved during the quarter. Moving forward, the global economy is still faced with many downside risks. This suggests that Indonesia’s exports will likely remain challenging and we expect the country’s exports to remain in a contraction of 2.8% in 2017, albeit by a smaller magnitude compared with an estimate of -7.0% for 2016 and -14.6% in 2015. Economist:  Rizki Fajar| +6221 2970 7065
To access our recent reports please click on the links below: 04 Oct: Money Supply and Loan Growth Decelerate in August 04 Oct: Inflation Picks Up Slightly In September 23 Sep: BI Cuts The Key Rate to 5.00% 15 Sep: Both Exports and Imports Recover in August 01 Sep: Inflation Continues To Ease In August 01 Sep: Money Supply and Loan Growth Decelerate in July