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 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