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Indonesia May trade surplus expected at 6-month high

Indonesia May trade surplus expected at 6-month high

FILE PHOTO: A tug boat is seen docking at Tanjung Priok Port in Jakarta, Indonesia, January 11, 2021. REUTERS/Willy Kurniawan

JAKARTA: Indonesia is expected to post its biggest trade surplus in six months of US$2.3 billion in May, with exports and imports seen surging amid high commodity prices and a global trade recovery, a Reuters poll showed on Friday.

Southeast Asia's biggest economy has recorded a trade surplus every month since May 2020 as shipments were boosted by the high commodity prices and as trade partners eased coronavirus-related restrictions, while import recovery was slower due weak domestic demand.

The surplus in April was US$2.19 billion.

Eleven economists in the poll expected exports to jump 57.49per cent on a yearly basis in May, outpacing the April's rise of 51.94per cent, while imports were seen leaping 65per cent in May, against the previous month's 29.93per cent rise.

"This high increases tend to be caused by the low base effect in the past year because last year's trading volume was very low at the beginning of the pandemic," said Josua Pardede, an economist with Bank Permata.

Josua predicted the resource-rich country will continue to post trade surpluses for some time on the back of high commodity prices.

(Polling by Nilufar Rizki and Tabita Diela; Editing by Gayatri Suroyo, Martin Petty)

Source: Reuters

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