Indonesia trade in deficit on mineral export ban

Screen shot 2014-03-04 at 6.22.36 AM

Indonesia swung to a trade deficit in January as a controversial government ban on mineral ore shipments by Southeast Asia’s biggest economy crimped overall exports, data showed on Monday.

The January deficit of $431 million compared to a $1.5 billion surplus in December, the official Statistics Agency said.

“The 5.75 per cent drop in exports is due to the annual pattern and the coming into effect of the mineral law,” said Adi Lumaksono, a senior official at the agency.

Indonesia imposed a ban on exports of mineral ore including bauxite, nickel and copper beginning January 12.

The move is one of a series of industrial policies pushed by nationalist politicians who argue foreign firms reap an inordinate share of the profits from exploiting resources and business opportunities in the fast-growing economy.

The mineral export ban contributed in December to Indonesia’s biggest trade surplus in two years as mining firms ramped up exports to key markets like China ahead of the impending ban.

The January deficit is Indonesia’s first monthly shortfall since September.

However, inflation eased in February, the agency said Monday, the latest sign the economy was stabilising after a rough 2013.

Inflation came in at 7.75 per cent, lower than analyst estimates, and compared to 8.22 per cent in January.

Indonesia was hit hard last year by expectations the US Federal Reserve would start to wind down its economic stimulus programme, which analysts said could cause investment capital to exit emerging markets.

Meanwhile, HSBC’s manufacturing purchasing managers index — a gauge of future manufacturing activity — expanded for the sixth straight month in February albeit at a slower rate than in the previous month, the bank said.

 

 

 

Source : Channel News Asia | March 3, 2014

Advertisements

About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s