Key facts
- Indonesia's August trade surplus was $5.49 billion, the largest in nearly three years.
- August exports grew 5.78% to $24.96 billion, while imports fell 6.56% to $19.47 billion.
- Economists had forecast a $4 billion surplus for August.
- September headline inflation was projected to rise to 3.30% from 3.19%.
- Core inflation in September was forecast at 2.91%, little changed from August.
- Indonesia reported a $3.42 billion trade surplus in September.
Indonesia recorded a significantly larger-than-expected trade surplus of $5.49 billion in August, marking the widest surplus in nearly three years. This was driven by a sharp 6.56% drop in imports, which more than compensated for a slowdown in export growth to 5.78%. Economists polled by Reuters had anticipated a surplus of $4 billion. The country's trade balance has been positive for several months, following a streak of surpluses that ended in May after approximately six years.
August exports reached $24.96 billion, with shipments to the U.S. seeing a decline despite a reduced tariff rate. Overall export growth was bolstered by increased sales of palm oil, nickel, gold, and jewelry. Imports fell to $19.47 billion, with notable decreases in purchases of food industry waste, machinery, gold, jewelry, iron, steel, organic chemicals, and cereals.
Looking ahead, September headline inflation was projected by 20 economists to rise slightly to 3.30% from 3.19%, remaining within the central bank's target range of 1.5%–3.5%. Core inflation was expected to remain stable at around 2.91%.