Indonesia’s trade surplus was noticed to narrow slightly in October to USD 4.5 billion amid a weakening in global trade and moderating commodity prices.

Exports from Indonesia have been buoyed since last year by inflated commodity prices. However, prices of some essential commodities like palm oil have been falling in the past few months.

The median forecast was for a USD 4.5 billion surplus in October, down from September’s surplus of nearly USD 5 billion.
Export growth remained at 13.85 per cent in October, slower than September’s 20.28 per cent. On the other hand, imports were seen up 23.62 per cent on a yearly basis, compared to 22.02 per cent in September.

Bank Mandiri’s economist Faisal Rachman had predicted a USD 4.42 billion October surplus. He said while export growth was slowing, demand for imports was growing in preparation for year-end needs.

The Indonesian government has forecast the resource-rich country will book its largest exports on record this year of USD 292 billion.