Trade deficit swells to US$2.3b in July

TRADE BALANCE - JAKARTA. High imports of oil and gas, consumer goods and raw materials dragged the trade deficit to US$2.03 billion in July; the largest deficit recorded this year, according to the Central Statistics Agency (BPS).

Indonesia recorded a trade surplus of US$1.74 billion in June.

The BPS said on Wednesday that an increase in exports had not been able to balance soaring imports.

Imports increased 62.17 percent from June to $18.27 billion, which was also 31.56 percent growth year-on-year (yoy).

Imports of consumer goods rose even higher than overall imports to $1.72 billion, up 70.50 percent month-to-month (mtm), followed by raw and auxiliary material imports to $13.67 billion, a 59.28 percent increase mtm, said BPS head Suhariyanto.

"That is hopefully an indication that [imports] will be able to boost investment and economic growth," Suhariyanto said Wednesday in Jakarta.

Meanwhile, exports in July increased 25.19 percent from June and 19.33 percent yoy at $16.24 billion, helped by non-oil and gas exports, which had increased by 31.18 percent to $14.81 billion.

Indonesia's trade balance has been suffering this year, having only recorded a trade surplus in March and June, owing to high global oil prices and strengthening of the United States dollar.