Indonesia trade picture brightens after Ramadan slump

374780

Indonesia posted a slim trade surplus in July, bouncing back from a deficit the previous month caused by increased imports before the Islamic holy month of Ramadan and the Eid holiday, data showed on Monday (Sep 1).

Meanwhile inflation eased further to 3.99 per cent year-on-year in August from 4.53 per cent in July, continuing a downward trend after a big rise in fuel prices sparked a surge last year.

The trade surplus came in at US$125 million, compared to a deficit of around US$290 million in June as shops stocked up on expensive imported food and clothes before Islam’s holiest month.

Suryamin, the head of the official statistics agency, who like many Indonesians goes by one name, said imports surged in June before the start of Ramadan but actually slowed during the holy month in July. Eid falls at the end of Ramadan.

Imports slipped to US$14.05 billion in July, down 19.31 per cent from a year earlier. The trade balance is keenly watched because a large shortfall adds to the current account deficit, which has been a key concern of foreign investors in recent times. Narrowing the deficit is one of the main economic challenges facing Indonesia’s president-elect Joko Widodo, who will take office in October.

However on a more disappointing note, manufacturing activity in Indonesia contracted in August, according to HSBC’s purchasing managers’ index. It slipped to 49.5, a surprise reading after months of expansion. A reading above 50 indicates expansion, while below signals contraction.

 

Source : Channel News Asia | September 1, 2014

Thomas D’Innocenzi

Advertisements

About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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