Indonesia was seen posting a 2.16 billion US dollar trade surplus in August, slightly smaller than the previous month, with export and import contraction slowing, a Reuters poll showed on Monday.
Southeast Asia’s largest economy had its biggest trade surplus in nine years in July of $3.26 billion, as exports improved amid easing of coronavirus-induced restrictions in many trade-partner countries, but imports remained weak, reports Reuters.
In the August poll, 14 economists surveyed expected the pace of contraction in exports to slow to a median of 5.79 per cent on an annual basis, from 9.9 per cent contraction July.
Imports were seen down 20.58 per cent year-on-year, compared with the 32.55 per cent plunge in July.
Economists at state-owned brokerage Mandiri Sekuritas said the moderation was likely due to improving demand for shipments from the country and higher prices of coal and palm oil, Indonesia’s top export products.
Indonesia’s capital city Jakarta on Monday began reinstating curbs to control its Covid-19 outbreak, which may further depress imports, but exports may continue to rise on the back of global economic recovery, Mandiri economists wrote in a note.
Jakarta is the epicentre of the nation’s outbreak. In total, Indonesia has reported 218,382 cases so far, with 8,723 deaths.