ASEAN KEY DESTINATIONS
Indonesia books US$1.02 billion trade deficit in August
Statistics Indonesia (BPS) announced on Monday that Indonesia recorded a trade deficit of US$1.02 billion in August, mostly as a result of oil and gas imports.
The August trade deficit is half of the $2.03 billion deficit in July, Indonesia's highest in five years.
Exports decreased by 2.9 percent month-to-month (mtm) to $15.82 billion, with the mining sector contributing the most to the deficit at 13.58 percent.
Imports declined by 7.97 percent to $16.84 billion mtm, with decreases in imports for apples, cloves and automotive parts.
From January to August, the trade deficit amounted to $4.09 billion, with monthly surpluses only occurring in March and June.
BPS head Suhariyanto said that, even though non-oil and gas commodities booked a $639.6 million surplus in August, the deficit in the oil and gas sector was much bigger ($1.66 billion).
To cut its dependency on imports, including oil and gas, the government launched a presidential regulation that requires that all vehicles use B20 biodiesel. The regulation came into effect on Sept. 1 and is expected to save the country $5.9 billion in oil and gas imports annually.
“To balance it out, we hope that exports will also recover with all policies the government is currently implementing,” Suhariyanto said.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below