BI: Electric Plane Import Triggers Trade Balance Deficit
16 February 2018 12:10 WIB
TEMPO.CO, Jakarta - Bank Indonesia (BI) recorded a trade balance deficit of US$0.68 billion in January 2018. The reason for this deficit is the surplus of non-oil and gas balance that fell below its deficit.
"The non-oil/gas trade surplus in January 2018 was US$0.18 billion, down from the previous month's surplus of US$0.83 billion," BI executive director Agusman said in a written statement on Thursday, February 15.
Agusman said that the decline in the non-oil/gas trade surplus was due to a hike in non-oil/gas imports by US$0.46 billion (month-to-month/ mtm), which was accompanied by a decrease in non-oil exports by US$0.19 billion (mtm).
He said the increase in non-oil and gas imports was mainly due to increased imports of electric machines and planes, plastics and plastics articles, vehicles and their spare parts, organic chemicals, and weapons and ammunition.
Meanwhile, the decline of non-oil and gas exports is mainly due to the decline in exports of animal and vegetable fats and oils, iron and steel, tin, ore, crust, and metal ash, and nickel.
On the other hand, oil and gas trade balance deficit dropped, following an import value that fell lower than exports. The oil and gas trade balance deficit fell from US$1.05 billion in December 2017 to US$0.86 billion in January 2018.
Agusman said this was mainly due to a decline in oil and gas imports by US$0.42 billion (mtm)—including for crude, oil lifting, and gas. In the same period, oil and gas exports fell by US$0.22 billion (mtm).
According to the central bank, Agusman said, the curbed trade balance deficit is inseparable from the increase in production and investment activities, which are in line with improving the domestic economic outlook and the impact of rising prices of imported goods.
"In the future, the trade balance performance is expected to improve with the global economic recovery and stable high commodity prices. It will support the improved outlook for economic growth and current account performance," Agusman said.
Budiarti Utami Putri
