Indonesia’s October deficit was recorded at 1.82 billion USD in line with strong domestic demand, according to the Bank Indonesia. (Photo: Antara)

Jakarta (VNA) – Indonesia’s October deficit was recorded at 1.82 billion USD in line with strong domestic demand, according to Executive Director of the Bank Indonesia (BI) Communication Department Agusman.

“Both the non-oil and gas as well as the oil and gas trade balance contributed to the overall trade deficit. Cumulatively, from January to October 2018, the trade deficit stands at 5.51 billion USD”, Agusman noted.

The non-oil and gas trade deficit was estimated at 0.39 billion USD in the period, thus reversing the previous 1.32 billion USD surplus after the non-oil and as import growth surge exceeded the uptick in corresponding exports.

Non-oil and gas imports increased 2.39 billion USD as compared to the previous month, driven by raw materials and capital goods such as machinery and mechanical appliances, electrical machinery and equipment, iron and steel, plastics and articles of plastic, as well as food industry waste/leftovers.

Meanwhile, export of the products rose 0.68 billion USD, led by manufacturing commodities including vehicles and components, jewellery/gems, footwear, and inorganic chemicals. During the ten-month period, the non-oil and gas trade surplus stood at 5.22 billion USD.

The oil and gas trade deficit increased from 1 billion USD in September to 1.43 billion USD in October, with main contributor being 0.62 billion USD influx of oil and gas imports due to more shipments of crude oil, refined products and gas. From January to October, oil and gas trade deficit stood at 10.74 billion USD.

BI cites persistent strong domestic demand, particularly investment, for the larger current account deficit in October 2018. However, vibrant investment activities are expected to increase economic productivity and competitiveness moving forward.

As of October 2018, BI projects the current account deficit to remain below the manageable threshold of 3 percent of GDP. - VNA