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Indonesia: Trade surplus widens as exports surge | ING Economics

Indonesia: Trade surplus widens as exports surge | ING Economics | FXMAG.COM
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  1. $7.56 bn April trade surplus
    1. Trade balance hits $7.56bn surplus
      1. Trade surplus jumps to multi-year high
        1. Palm oil export ban and the IDR

          Indonesia’s export sector gets a lift from elevated commodity prices

          indonesia trade surplus widens as exports surge ing economics grafika numer 1indonesia trade surplus widens as exports surge ing economics grafika numer 1

          Source: Stenly Lam

          $7.56 bn April trade surplus

          Higher than expected

          Trade balance hits $7.56bn surplus

          Indonesia’s April trade balance showed similar trends but there were a couple of surprises. Both exports and imports posted double digit gains for the month. Exports however rose faster than expected, up 47.7% (40% expectation) as surging global prices helped boost Indonesia’s exports. Imports also posted strong growth although actual expansion was lower than forecast. Surging exports and lower-than-expected imports resulted in a trade surplus of $7.56 bn. The sizable trade surplus should help keep the current account in positive territory.

          Trade surplus jumps to multi-year high

          indonesia trade surplus widens as exports surge ing economics grafika numer 2indonesia trade surplus widens as exports surge ing economics grafika numer 2

          Source: Badan Pusat Statistik

          Palm oil export ban and the IDR

          Sizable trade surpluses have been a key support for the IDR of late. Indonesia has maintained the trade balance in surplus since the start of the pandemic, with the recent global commodity price surge boosting this number further. The latest trade surplus is the highest since at least 2007 and may have lent some stability to IDR for the month of April. Going forward, the recent ban in palm oil exports may cap trade surpluses in the near term. Less sizable trade surpluses may mean less support for the IDR in the near term and we can expect some pressure on the IDR in the coming months.

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