Indonesia's trade surplus remains robust at USD 3.36 billion, but faster import growth of 18.4% compared to 11.9% export growth suggests a potential narrowing of the surplus in the coming months.
Indonesia’s September trade surplus was USD 3.36bn, with exports up 11.9% year-on-year and imports up 18.4%, per UOB. A sizeable surplus supports the rupiah, though faster import growth points to gradual narrowing.
A trade surplus means Indonesia is earning more foreign currency from exports than it spends on imports, which can support the rupiah.
Imports rose 18.4% year-on-year, faster than exports at 11.9%, pointing to a gradual narrowing of the trade surplus.
Indonesia recorded a USD 3.36 billion trade surplus in September, supported by an 11.9% year-on-year rise in exports. However, UOB analysts warn that the surplus faces a gradual narrowing as import growth accelerated to 18.4%, driven by strengthening domestic demand and investment.
A trade surplus means Indonesia is earning more foreign currency from exports than it spends on imports, which provides fundamental support for the rupiah.
Imports rose 18.4% year-on-year, significantly faster than the 11.9% growth in exports, which points to a gradual narrowing of the trade surplus and potential pressure on the currency.