Indonesia's China Trade Deficit Widens to $13.6 Billion as Nickel Downstreaming Lifts Imports
Updated
Updated · idnfinancials.com · Aug 4
Indonesia's China Trade Deficit Widens to $13.6 Billion as Nickel Downstreaming Lifts Imports
1 articles · Updated · idnfinancials.com · Aug 4
Summary
$13.6 billion marked Indonesia’s largest bilateral trade gap in June, even as its overall trade deficit narrowed to $0.45 billion.
Imports from China rose to support nickel downstreaming, with demand for capital goods and raw materials pushing total June imports up 34.3% year on year to $25.9 billion.
Exports still climbed 8.8% to $25.5 billion, led by mineral fuels, nickel and palm oil, while machinery, electrical equipment and plastics dominated the import mix.
Two straight months of trade deficits suggest weaker structural foreign-exchange inflows despite resilient investment and industrial activity, prompting expectations Bank Indonesia will keep the BI Rate at 6.25% and focus on external stability.