Image: Reuters Berita 24 English - According to analysts surveyed by Reuters, Indonesia's trade surplus likely increased to $3.52 billio...
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| Image: Reuters |
Berita 24 English - According to analysts surveyed by Reuters, Indonesia's trade surplus likely increased to $3.52 billion last month, helped by the easing of a three-week export embargo on palm oil. However, several economists still anticipate the gap to close later this year.
The largest economy in Southeast Asia has been experiencing a boom in exports as a result of higher commodity prices, posting monthly trade surpluses since May 2020.
Due to the $2 billion in lost exports caused by the palm oil export embargo that was in place from April 28 to May 23 in an effort to control local cooking oil prices, Indonesia reported a $2.9 billion surplus in May.
Following the implementation of Indonesia's required local sales policy, palm oil exports have restarted, albeit more slowly than they were before to the prohibition.
In a survey of 18 analysts, the median prediction was that exports would expand by 30.26% annually in June, up slightly from May's 27%.
In contrast to May's 30.74 percent growth, June imports were forecast climbing 20.10 percent annually.
According to Faisal Rachman, an analyst with Bank Mandiri, who pegged the surplus for June at $3.34 billion, commodity prices have begun to decline on worries about a worldwide recession.
In the second half of the year, "this could risk lowering export performance," he said, adding that Indonesia's trade surplus will probably decline as imports are anticipated to rise as a result of a strengthening domestic economy.
