Poor imports help Indonesia to post trade surplus
16 November 2015, Nirapad News: Indonesia posted its 11th straight monthly trade surplus in October, which should guarantee its first annual surplus since 2011 but also shows howweak imports remain.
Monday’s trade data is not seen impacting a central bank policy meeting on Tuesday. Twelve of 13 analysts in a Reuters poll expect Bank Indonesia (BI) to again hold the benchmark rate at 7.50 per cent, to support the rupiah ahead of a possible December hike in the United States interest rates.
BI officials have said it has its eyes on the US rate strategy and China’s economic slowdown.
Gundy Cahyadi, an economist with DBS in Singapore, said that from the October trade data “the most important thing to note is the sustained weakness in exports”.
For 13 consecutive months starting in October 2014, both exports and imports have contracted from year-earlier levels. Last month’s drop in exports, 20.98 percent, was the biggest since October 2012, while that for imports was 27.81 percent, the second biggest fall since July 2009.