Indonesia’s merchandise trade experienced deficit of US$ 0.1 billion in July contrasting to June’s US$ 0.3 billion surplus. The merchandise exports declined 5.1 percent Y-o-Y in July 2019. Non-Oil gas exports declined 6.88 percent whereas Oil and gas exports increased 13.35 percent in July 2019. Meanwhile, imports declined 15.21 percent amid government decision to narrow the current account deficit (CAD). Moreover, Oil and gas imports declined 34.28 percent.
Amid of trade tensions and import substitution policy of government to reduce CAD, exports and imports are likely to remain soft in coming months.
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