Indonesia’s October deficit was recorded at 1.82 billion USD in line with strong domestic demand, according to the Bank Indonesia. (Photo: Antara)Jakarta (VNA) – Indonesia’sOctober deficit was recorded at 1.82 billion USD in line with strong domesticdemand, according to Executive Director of the Bank Indonesia (BI)Communication Department Agusman.
“Both the non-oil and gas as well as the oil and gas trade balance contributedto the overall trade deficit. Cumulatively, from January to October 2018, thetrade deficit stands at 5.51 billion USD”, Agusman noted.
The non-oil and gas trade deficit was estimated at 0.39 billion USD in theperiod, thus reversing the previous 1.32 billion USD surplus after the non-oiland as import growth surge exceeded the uptick in corresponding exports.
Non-oil and gas imports increased 2.39 billion USD as compared to the previousmonth, driven by raw materials and capital goods such as machinery andmechanical appliances, electrical machinery and equipment, iron and steel,plastics and articles of plastic, as well as food industry waste/leftovers.
Meanwhile, export of the products rose 0.68 billion USD, led by manufacturingcommodities including vehicles and components, jewellery/gems, footwear, andinorganic chemicals. During the ten-month period, the non-oil and gas tradesurplus stood at 5.22 billion USD.
The oil and gas trade deficit increased from 1 billion USD in September to 1.43billion USD in October, with main contributor being 0.62 billion USD influx ofoil and gas imports due to more shipments of crude oil, refined products andgas. From January to October, oil and gas trade deficit stood at 10.74 billionUSD.
BI cites persistent strong domestic demand, particularly investment, for thelarger current account deficit in October 2018. However, vibrant investmentactivities are expected to increase economic productivity and competitivenessmoving forward.
As of October 2018, BI projects the current account deficit to remain below themanageable threshold of 3 percent of GDP. - VNA
VNA
