Indonesia: Merchandise exports drop at a steep pace in July
Merchandise exports plummeted 9.9% on annual basis in July amid a plunge in energy exports, contrasting June’s 2.1% rise. Meanwhile, merchandise imports dived 32.6% on an annual basis in July (June: -6.4% yoy) amid weak domestic demand. However, both declines could have been exacerbated by the Eid al-Adha celebration falling in July this year. As a result, the merchandise trade balance improved, recording a USD 3.3 billion surplus in July (June: USD 1.2 billion surplus). Lastly, the trend pointed up, with the 12-month trailing merchandise trade balance recording a USD 7.3 billion surplus in July, compared to the USD 3.8 billion surplus in June.
Looking ahead, export and import performance should gradually improve as the world emerges from lockdown and amid a supportive base effect, although the outlook is highly uncertain.