Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Indonesia trade surplus seen shrinking in Dec to five-month low: Reuters poll

Published 01/13/2022, 11:55 PM
Updated 01/14/2022, 12:01 AM
© Reuters. FILE PHOTO: A worker stands on a container at Tanjung Priok Port in Jakarta, Indonesia, January 11, 2021. REUTERS/Willy Kurniawan

JAKARTA (Reuters) - Indonesia's trade surplus likely shrank to the lowest in five months in December on slower growth in exports and imports, a Reuters survey showed, although Southeast Asia's biggest economy is on track to post record exports for all of last year.

The resource-rich country has been riding an export boom on the back of a spike in commodity prices. The December trade data, due to be announced on Monday, is set to confirm that its annual exports reached an all-time high in 2021.

Indonesia has posted a trade surplus every month since May, 2020, boosting the rupiah and helping the currency became one of emerging Asia's best performers last year.

However, markets are closely monitoring the impact of a coal export ban the government imposed from Jan. 1 to prevent widespread domestic power outages, which economists say could see Indonesia swing back to a trade deficit.

For December, 12 economists in the poll forecast a surplus of $3.13 billion, down from the previous month's $3.51 billion.

Exports were seen up 40.4% on a yearly basis, decelerating from November's growth pace of 49.7%, while imports were expected to rise 39.4%, compared with November's 52.62% growth.

© Reuters. FILE PHOTO: A worker stands on a container at Tanjung Priok Port in Jakarta, Indonesia, January 11, 2021. REUTERS/Willy Kurniawan

Nomura analysts said a full-month coal export ban in January could reduce exports by $4 bilion, which could push Indonesia into a trade deficit. Local brokerage Bahana Sekuritas gave an estimated value of January's coal exports at around $3 billion.

Authorities in Indonesia this week eased the ban, allowing 37 vessels to depart, although hundreds of miners whose output is estimated to cover up to 40% of the country's total remain barred from exporting.

(Polling by Devayani Sathyan and Tushar Goenka in Bengaluru; Writing by Gayatri Suroyo in Jakarta; Editing by Ed Davies)

Latest comments

ok
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.