Indonesia’s non-oil and gas exports in October increased by 1.8% month-on-month (m-o-m) but dropped 0.9% year-on-year (y-o-y) to US$12.9 billion, while oil and gas exports reached $2.5 billion, down 5.8% m-o-m and 9.4% y-o-y, according to the Ministry of Trade.
The country’s total exports for the month were valued at $15.4 billion, yielding a trade surplus of $23.2 million, the agency added in a statement.
“This surplus has decreased the trade balance deficit nearing the end of this year,” said Minister of Trade Rachmat Gobel.
Despite the surplus, cumulatively, the January-October 2014 trade balance is still a deficit of $1.6 billion, triggered by a $10.7-billion oil/gas trade deficit although attaining a non-oil/gas surplus of $9.1 billion.
Fats and animal/vegetable oils experienced the highest increase with 29.7% m-o-m and 36.9% y-o-y.
Bolstering outbound shipments included the zero percent export duty for crude palm oil (CPO) that went into effect in October this year, as well as the increase in demand from India and China.
Exports to emerging markets rose significantly in October 2014, with the top destinations being Australia, the United Arab Emirates, Egypt, and Saudi Arabia.
The trade ministry said exports to Australia were driven by demand for iron and steel products, machinery, and fertilizer. Shipments to Australia also got a lift particularly for the food and beverage sector with Indonesia’s participation in the Melbourne International Coffee Expo in May, the Goodfood and Wine Show in June, and the Fine Food Australia in September.
The increase in exports to the UAE was driven by demand for CPO, jewelry, and automotive products. In addition, joining exhibitions in the UAE this year such as the Beautyworld 2014 and the Index Exhibition in May and the Automechanika in June accelerated exports of automotive components, furniture, food and beverages, and cosmetics.
The rise in exports to Egypt was driven by exports of CPO, fiber, and rubber products, while the country’s presence in the Saudi Food Hotel and Hospitality exhibition in April boosted shipments of food and beverage products.
The Ministry of Trade said it moved to decrease importing activity to narrow the trade surplus. The total import value for October 2014 dropped 1.4% m-o-m and 2.2% y-o-y to $15.3 billion.
The decrease was due partly to a contraction in oil/gas imports, though this was still a 3% y-o-y increase. Meanwhile, non-oil/gas imports were down 1.2% m-o-m and 3.7% y-o-y.
Imports in October were still dominated by raw/auxiliary materials and capital goods. The weakening of the national automotive market and the imposition of anti-dumping duty that has been in effect since 2012 contributed to the decline of imports of raw materials, the ministry said.
Photo: tolleya
