Trade Balance: September 2021

Iɴᴅᴏɴᴇsɪᴀ ᴛʀᴀᴅᴇ ʙᴀʟᴀɴᴄᴇ

Sᴇᴘᴛᴇᴍʙᴇʀ 2021 : ᴛᴏ ʟᴇᴀᴅ ᴛᴏ ᴀɴᴏᴛʜᴇʀ sᴜʀᴘʟᴜs ʏᴇᴀʀ

𝐏𝐫𝐢𝐜𝐞 𝐅𝐚𝐜𝐭𝐨𝐫

In September, Indonesia  trade balance is a net surplus of USD4.4bn (August: USD4.8bn) which lead to a total surplus balance of USD25.1bn during January 2021 – September 2021 (9M21), an increase of 87.8% as compared the same period of 2020 of USD13.4bn. During the 9M21 the country’s non-oil&gas trade surplus amounted to USD33.5bn (9M20:USD18.1bn), while the oil-gas sector contributed a deficit of USD8.4bn (9M20:-USD4.8bn).

Most of the bounties of the international trade during 9M21 come more from the higher price of the country’s major export goods than to the volume. During the year 2020, total volume of the country’s export decreased by 11.4% YoY to 579.7mn tonnes , of which non-oil &gas export volume saw a 12.1% YoY decline to 552.2mn tonnes.

At the other end, global commodity price during the 9M21 year-to-date increased by 171% for coal (9M20: -13.4%), 24.2% for CPO (9M20:-6.6%), and some 90% for steels, among others.

For the first 9 (nine) month this year, vegetable/animal fat and oil, mineral fuels, iron and steel made up the 3 (three) largest components of Indonesia non-oil export, of 15.4% , 13.9%, and 9.2%, respectively.

𝐇𝐢𝐠𝐡𝐞𝐫 𝐭𝐫𝐚𝐝𝐞 𝐬𝐮𝐫𝐩𝐥𝐮𝐬, 𝐥𝐞𝐧𝐝 𝐚 𝐬𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐞𝐜𝐨𝐧𝐨𝐦𝐲 𝐭𝐡𝐢𝐬 𝐲𝐞𝐚𝐫

This year trade suplus also have a positive impact on the nation’s foreign reserve. Indonesia’s foreign reserve for September 2021 amounted to USD146.bn, representing year-to-date increase of 6.4%, more than twice the pace during the same period last year. The incresing rate of foreign reserve addition could positively affect the nation’s effort on economic recovery and stabilty.

Contact Writer*: Muhammad

+6221081291776440

*Muhammad is a 2021 graduate of Economics Science of  UPN Veteran Jakarta, Pondok Labu South Jakarta, Indonesia