Indonesia’s trade surplus narrows to US$4.3 billion in September as imports rebound

straight months of trade surplus. Imports, meanwhile, jumped 7.2 per cent to US$20.3 billion, reversing August’s contraction and exceeding expectations, with capital goods and industrial inputs showing notable gains. “The trend reflects stronger domestic demand, supported by the government’s pro-growth policy agenda,” said Josua Pardede, chief economist at Bank Permata. Indonesia’s manufacturing purchasing managers’ index staying above the expansion threshold of 50 in September and October helped drive import growth. Liza Camelia Suryanata, head of research at Kiwoom Sekuritas, said the rise reflected increased confidence among producers. Exports of crude and refined palm oil reached 17.6 million tonnes in the January-to-September period, up 11.6 per cent year on year, although monthly shipments in September slipped 6.97 per cent due to weaker prices and seasonal demand. While exports continue to benefit from strong shipments of gold, palm oil and steel, Kiwoom Sekuritas analysts ...