Indonesia March trade surplus, wider than expected, hits 4-month high
JAKARTA : Indonesia reported on Monday a $4.33 billion trade surplus in March, more than expected and the widest in four months as shipments beat estimates on strong palm oil and nickel exports as well as a rush to beat the start date for U.S. tariffs.
A Reuters poll of analysts had expected a surplus of $2.64 billion in March. The March surplus was the largest since November 2024, according to LSEG data.
Exports from the resource-rich country have rebounded from lows reached after the end of a commodity boom in 2022, but shipments could soon be affected by a dimming global growth outlook due to the trade war sparked by U.S. tariffs.
Among the countries that U.S. President Donald Trump targeted for tariffs above 10 per cent, Indonesia was hit with a 32 per cent levy, which has been paused for 90 days.
Several Indonesian ministers have been in Washington since last week to try to negotiate a deal to avoid the tariffs, presenting a proposal that includes buying more American products to reduce the trade gap with the U.S.
Exports rose 3.16 per cent on an annual basis in March to $23.25 billion, official data showed on Monday, compared with a 3.40 per cent fall expected by economists polled by Reuters.
Shipments of palm oil surged nearly 41 per cent last month from the same month in 2024 to $2.19 billion, while nickel metals exports rose 12 per cent to $2.38 billion. They helped offset a drop in coal exports.
Total imports were worth $18.92 billion, the statistics bureau said, up 5.34 per cent on a yearly basis, compared with the poll's prediction of a 6.6 per cent rise.
Hosianna Situmorang, an economist with Bank Danamon, called March's surplus solid, bolstered by rising U.S.-bound exports.
"Exporters accelerated shipments ahead of Trump's reciprocal tariffs, causing heavy port congestion at Tanjung Priok, while freight bookings at Chinese ports plunged by 640–800K containers, signaling early spillover from trade tensions," she said, referring to Jakarta's main port.
Exports of electronics, footwear and knitted apparel to the U.S. grew more than 15 per cent each on a yearly basis in the first quarter, the data showed. The three were Indonesia's biggest export products to the U.S.
The trade surplus with the U.S. also was the biggest contributor to Indonesia's overall surplus in January-March 2025, standing at $4.32 billion, up from $3.61 billion in the same period in 2024. Indonesia's overall trade surplus in the first quarter reached $10.92 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
31 minutes ago
- Business Times
JD.com billionaire unveils turnaround plan after five-year slump
[BEIJING] founder Richard Liu vowed to speed up an overseas foray and compete with Meituan in new arenas from food delivery to travel, describing his boldest attempt yet to revive an online retailer that's languished since a 2020 government crackdown. The past half-decade was the darkest period for his company, Liu said during a rare news conference at JD's Beijing headquarters on Tuesday (Jun 17). The company lost its way, the 52-year-old tech mogul said, at a time when rivals such as PDD Holdings surged ahead. JD's future growth should all be about leveraging a battle-tested logistics network in areas such as meal delivery, where it's making headway despite initial losses, the founder said. 'For JD, it's a lost five years, to put it bluntly,' Liu said in comments published in Chinese media, which a company spokesperson later confirmed. 'No innovation, no growth, no progress. It should be considered the most unremarkable and least-valuable five years in my entrepreneurial history,' Liu told reporters on the eve of JD's signature Jun 18 shopping festival. In March, JD made an aggressive entry into China's US$80 billion-plus food delivery market, a long-dormant arena controlled by Meituan and Alibaba Group Holding's Liu personally handed out takeouts to customers during a publicity stunt, gave away 10 billion yuan (S$1.8 billion) in user subsidies, and promised above-industry benefits for his army of 100,000 delivery riders. His offensive has forced the two rivals to step up discounts and coupons in a similar fashion, a renewed price battle that quickly caught the attention of regulators. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up About 40 per cent of JD's new food-delivery users have since converted into e-commerce customers, Liu said. Despite the frenzy, Liu said that JD has always played the long game of investing in supply chain and branded products. It plans to roll out its e-commerce platform in Europe in 2026, after three years of building infrastructure there. On its home turf, the company will challenge Meituan in another key market – hotel and flight bookings – offering a three-year membership programme that waives commissions for hotels. Meituan founder Wang Xing was among the guests at a recent dinner Liu hosted for tech founders, the JD chief said. 'I told him straight up, 'bro, we are making a move into food delivery'.' During Tuesday's briefing, Liu portrayed China's largest online retailer by revenue as the anti-PDD – one that focuses on high-quality products and disdains the model of cross-border shipping that underpinned the success of PDD's bargain app Temu. Liu has been vocal of late. The billionaire faded from the spotlight around 2018, when he was arrested in the US on suspicion of rape, though prosecutors ultimately declined to press charges. During Beijing's crackdown on the tech sector in 2022, he joined a long list of tech founders who stepped down as chief executive officer. CEO Sandy Xu – who previously served as the company's finance head – will eventually take full leadership of JD's domestic business, Liu said, which will free him up to steer an international expansion. BLOOMBERG
Straits Times
an hour ago
- Straits Times
India regulator says no ‘major safety concerns' on Air India's Boeing 787 fleet
Some 24 of Air India's 33 Boeing 787 aircraft had completed an 'enhanced safety inspection'. PHOTO: REUTERS India's aviation safety watchdog said on June 17 surveillance conducted on Air India's Boeing 787 fleet did not reveal any major safety concerns, days after one of its jets crashed, killing at least 271 people. 'The aircraft and associated maintenance systems were found to be compliant with existing safety standards,' the Directorate General of Civil Aviation (DGCA) said in a statement. The Boeing 787-8 Dreamliner bound for London with 242 people on board crashed seconds after take-off in Ahmedabad on June 12, hitting nearby buildings. All but one passenger on board were killed, along with about 30 people on the ground. The DGCA also said 24 of Air India's 33 Boeing 787 aircraft had completed an 'enhanced safety inspection' it had ordered the airline to carry out. The regulator, in a meeting with senior officials of Air India, raised concerns about recent maintenance-related issues reported by the airline. It advised the carrier to 'strictly adhere to regulations', strengthen coordination across its businesses and ensure availability of adequate spares to mitigate passenger delays, it added. The DGCA had met senior officials of Air India and Air India Express to review their operations amid increasing flight volumes. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
an hour ago
- Business Times
Thai May export growth beats forecast with fastest pace in more than three years
[BANGKOK] Thailand's exports rose by their fastest annual rate in more than three years in May, beating expectations after shipments to the United States soared, and the commerce minister said on Wednesday (Jun 18) that they would continue to perform well in 2025. May exports jumped 18.4 per cent from a year earlier to a record US$31 billion, compared with a forecast year-on-year increase of 6.7 per cent in a Reuters poll. The surge in exports, a key driver of the Thai economy, was driven by accelerated shipments ahead of the expiry of a US tariff pause in early July, the ministry said. In the first five months of 2025, exports rose 14.9 per cent from a year earlier. 'We hope export growth will exceed 10 per cent this year,' Commerce Minister Pichai Naripthaphan told a news conference, saying that the weaker baht would further support shipments. He said exports will be 'a hero' for the economy this year, and that he expected upcoming trade talks with the United States to go well. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'We have started negotiations. I believe that in the end, we will be able to end it well,' he said. Thailand faces a 36 per cent US tariff on its exports if a reduction cannot be negotiated before the moratorium expires in July. The US has imposed a 10 per cent tariff for most nations while the moratorium is in place. On Monday, Pichai said both countries could agree on good terms with tariffs, possibly as low as 10 per cent. In May, exports to the United States, Thailand's biggest market, jumped 35 per cent from a year earlier, while shipments to China rose 28 per cent. Exports of computers and parts surged 104 per cent in May from a year earlier, while shipments of agricultural goods rose 6.8 per cent. Rice export volumes dropped 0.2 per cent on the year. Last month, imports increased 18 per cent from a year earlier, beating a forecast rise of 13.1 per cent, which led to a trade surplus of US$1.12 billion for the month. REUTERS
