Indonesia's trade surplus in April exceeded expectations despite a significant decline in exports and imports, driven by falling prices of key commodities such as palm oil, coal, and nickel. The country's exports fell by 29.4% compared to the previous year, marking the largest decline since 2009. However, Indonesia still achieved a trade surplus of around IDR 55.8 trillion in April, surpassing estimates, supported by a sharper decline in imports, which decreased by 22.32%. Economists believe that the data may provide a stronger case for Bank Indonesia to adopt a more accommodative monetary policy, potentially cutting interest rates in the coming months.
The decline in commodity prices raises concerns about the impact on the trade surplus and overall economic growth. Despite these challenges, Indonesia's recovery from the pandemic's lows is supported by a surge in commodity prices in the global market. While the April trade data indicates significant setbacks, experts highlight the potential for monetary policy adjustments to support the economy. However, the country will need to closely monitor commodity price fluctuations and focus on diversifying its export base to maintain sustainable growth in the long term.
