Indonesia's Booming Export
JAKARTA (Thomson Financial) - Indonesia's trade surplus doubled in May from the previous month thanks to stronger exports, a senior government official said on Tuesday.
Trade surplus, excluding imports to trade zones, rose to $3.2 billion in May from $1.59 billion in April. The surplus topped market expectations, with six out of seven economists polled by Thomson Financial projecting surplus of between $1.88 billion and $2.74 billion.
Exports rose 17.5 percent to $12.89 billion while imports, excluding those to trade zones, increased 3.3 percent to $9.69 billion, said Ali Rosidi, deputy chairman of the Central Bureau of Statistics.
Total imports including the trade zones rose 1.41 percent to $11.66 billion.
The statistics bureau started including bonded zones in computing the trade data only from January. Imports into the bonded zones are mostly processed for export.
Data from the statistics agency showed that exports jumped due to a sharp rise in crude palm oil (CPO) exports to $1.9 billion from just $690 million in the previous month.
Analysts had expected such increase after CPO exports dropped sharply in April due to the increase in the export tax rate to 20 percent from 15 percent in March.
The CPO export tax rate is changed every month depending on the average CPO price in Rotterdam during the preceding month.
According to existing tax regime, the 20 percent rate applies when the average CPO price in Rotterdam over the preceding month hits $1,200 a tonne or higher but less than $1,300.
The government will impose a maximum tax rate of 25 percent if the price touches $1,300 per tonne. If the price falls below $1,200 per tonne, the government will use the 15 percent tax rate.
For July, the government has increased the tax rate back to 20 percent.
Indonesia is the world's biggest CPO producer, with domestic output expected to grow about 8 percent to 18.4 million tonnes this year.
CPO is the country's biggest non-oil and gas export commodity, with domestic demand, mostly for producing cooking oil, accounting for less than 30 percent of total output.
Trade surplus, excluding imports to trade zones, rose to $3.2 billion in May from $1.59 billion in April. The surplus topped market expectations, with six out of seven economists polled by Thomson Financial projecting surplus of between $1.88 billion and $2.74 billion.
Exports rose 17.5 percent to $12.89 billion while imports, excluding those to trade zones, increased 3.3 percent to $9.69 billion, said Ali Rosidi, deputy chairman of the Central Bureau of Statistics.
Total imports including the trade zones rose 1.41 percent to $11.66 billion.
The statistics bureau started including bonded zones in computing the trade data only from January. Imports into the bonded zones are mostly processed for export.
Data from the statistics agency showed that exports jumped due to a sharp rise in crude palm oil (CPO) exports to $1.9 billion from just $690 million in the previous month.
Analysts had expected such increase after CPO exports dropped sharply in April due to the increase in the export tax rate to 20 percent from 15 percent in March.
The CPO export tax rate is changed every month depending on the average CPO price in Rotterdam during the preceding month.
According to existing tax regime, the 20 percent rate applies when the average CPO price in Rotterdam over the preceding month hits $1,200 a tonne or higher but less than $1,300.
The government will impose a maximum tax rate of 25 percent if the price touches $1,300 per tonne. If the price falls below $1,200 per tonne, the government will use the 15 percent tax rate.
For July, the government has increased the tax rate back to 20 percent.
Indonesia is the world's biggest CPO producer, with domestic output expected to grow about 8 percent to 18.4 million tonnes this year.
CPO is the country's biggest non-oil and gas export commodity, with domestic demand, mostly for producing cooking oil, accounting for less than 30 percent of total output.
loading...
