Indonesia exports rise 6.05% annually in July, beating expectations

JAKARTA: Indonesia exported goods worth $26.22 billion in July, up 6.05% from the same month a year earlier, official data showed on Tuesday, with a trade surplus posted for the first time in three months.

The exports growth compared with a 3.36% annual growth expected in a Reuters poll. July imports rose 27.02%, above the 24% expected in the poll, Statistics Indonesia said.

That resulted in a narrow trade surplus of $0.13 billion.

Exports for the month were supported by manufactured goods, such as basic chemical goods, refined nickel and aluminium products.

Indonesia, the world’s biggest exporter of thermal coal, palm oil and nickel, has benefited from higher prices of some of its top commodities this year, some of which were affected by the US-Israeli war with Iran.

Indonesia exports fell 6.6% y/y in November

However, despite high global crude prices, Indonesia’s oil and gas exports have dropped as the government asked contractors to prioritise domestic sales.

Earlier, the bureau’s data showed inflation in Southeast Asia’s largest economy remaining benign in August amid increased subsidies to keep fuel prices unchanged.

The annual inflation rate picked up to 3.19% in August, from 2.88% in July, slightly above the poll’s 3.13% forecast and within the central bank’s 1.5% to 3.5% target range.

The core inflation rate, which strips out government-controlled prices and volatile food prices, was 2.92%, compared with the poll’s 2.8% and June’s 2.76%.