Export Improves Balance of Trade: Bank Indonesia

05 November, 2014 | Source: antara news

Jakarta (ANTARA News) - Bank Indonesia (BI) has estimated that an increase in export activity, in line with global economic recovery, can help to improve balance of trade, despite the continued oil and gas deficit.

BI spokesperson Peter Jacobs stated that Indonesias external balance continues to recover. This is reflected in its balance of trade that showed an improvement from a US$0.31 billion deficit in August to a US$0.27 billion deficit in September.

"The improvement in trade balance in September will contribute positively towards the current account in the third quarter of 2014," Jacobs explained here on Tuesday.

Furthermore, non-oil trade balance recorded a higher surplus than the previous month. It stood at US$0.76 billion in September, higher than the US$0.49 billion recorded in August.

Surplus of non-oil trade balance amounted to US$0.5 billion in September last year.

The increase in non-oil balance of trade was primarily supported by the rise in exports of mineral fuels, fats and animal/vegetable oil, rubber and rubber products, as well as that of manufactured goods such as electrical equipment and machinery.

The increase in non-oil exports in September was primarily due to high demand from developed countries such as the USA, Australia, Japan, Germany and France, as well as some emerging countries such as China, Singapore and South Korea.

The improvement in trade deficit was also reflected in the third quarter of 2014. It recorded a deficit of US$0.53 billion, a sharp decline from the deficit of US$2.21 billion in the second quarter of the year.

The decline in the deficit due to lower non-oil imports in Q3 of 2014 amounted to US$33.2 billion from US$35.9 billion in Q2.

This decline was more than that of non-oil exports, which reduced from US$36.71 billion in Q2 to US$36.17 billion in Q3.

Moreover, oil and gas deficit in the third quarter increased to US$3.5 billion from US$2.99 billion in the second quarter of 2014.

"Bank Indonesia will monitor global and domestic risks that may affect the prospects of the current account deficit and external resistance," Jacobs affirmed.(*)

 

US companies perceive Indonesia as a potential regional hub for conducting their business and trade, Indonesia`s Trade Minister Enggartiasto Lukita stated.
Indonesia has eyed export of liquefied natural gas (LNG) to Cambodia to meet the demand for power plants in the country, Vice President Jusuf Kalla said here on Wednesday.
Indonesian Vice President Jusuf Kalla and Cambodian Prime Minister Hun Sen held bilateral talks at the Lotus Blanc Resort, Siem Reap, Cambodia, on Wednesday morning, to discuss the development of cooperation between both nations.
Economic diplomacy has become one of the priorities of the Indonesian foreign policy by boosting the country′s economic and trade cooperation with African, Central, and South American countries, Foreign Minister Retno L. P. Marsudi stated.
Indonesia and the European Union (EU) have developed relations across a wide spectrum of areas in the space of a few years as outlined in the EU-Indonesia Partnership and Cooperation Agreement (PCA). By Yuni Arisandy
Foreign Affairs Minister Retno L. P. Marsudi has called for reduction of plastic waste by using refillable bottles and reusable straws and bags.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu