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Indonesia’s trade deficit at five-year high
JAKARTA: Indonesia posted its widest trade deficit in more than five years in November as exports fell, adding pressure on the currency.
The trade deficit was US$2.1bil, much bigger than the US$735mil shortfall predicted by economists in a Bloomberg survey, and the worst result since July 2013.
Imports jumped 11.7% from a year earlier, according to figures released by the statistics bureau yesterday.
Interestingly, that is the weakest pace since March after the government adopted measures to reduce imports, including higher tariffs on some goods. Exports fell 3.3%, its first decline since June 2017.
The government will boost the competitiveness of Indonesian exports, including through incentives and keep reviewing the import policies, Finance Minister Sri Mulyani Indrawati told reporters in Jakarta.
Indonesia needs to be cautious about its export markets as China might have to go through adjustments following the trade war with the US, she said. Indonesia has been swept in an emerging-market rout this year, with the currency losing more than 7% against the dollar. — Bloomberg
Source: https://www.thestar.com.my/business/business-news/2018/12/18/indonesias-trade-deficit-at-fiveyear-high/#UHOr4pK67tFBZIHW.99