Indonesia Reports Strong Trade Growth in October

By Stefanno Sulaiman and Gayatri Suroyo

JAKARTA (Reuters) – Indonesia reported stronger-than-expected export and import growth in October, driven by strong agricultural shipments, according to official data released on Friday.

However, its trade surplus shrank to a three-month low of $2.47 billion. A Reuters poll of analysts had expected a surplus of $3.05 billion, compared to a revised $3.23 billion in September.

This October trade data will be among the economic indicators that the central bank will review to determine its monetary policy stance at an upcoming meeting.

Exports from resource-rich Indonesia have recently bounced back after a period of sharp declines due to falling global commodity prices. Statistics Indonesia reported that prices for some of the country’s commodities, including agricultural, metal, and mineral products, have recovered, though energy prices remain below last year’s levels.

Indonesia is a major exporter of palm oil, coal, nickel, tin, and natural gas among other resources. In October, exports increased by 10.25% year-on-year to $24.41 billion, outpacing the forecast growth of 3.84% from the Reuters poll. This growth rate was the fastest since January 2023.

Palm oil shipments saw a significant increase of 25.35% in October to $2.37 billion, driven by rising export volumes and prices, bolstered by Indonesia’s ambitious 2025 biofuel plan. Additionally, the value of cocoa shipments has surged this year due to higher international cocoa prices.

On the import side, there was a remarkable surge of 17.49% year-on-year to $21.94 billion, marking the fastest growth since September 2022. The poll had anticipated only 7.10% growth. Notably, imports of raw materials for industries rose by 18.48% last month compared to a year earlier.