Indonesia Aug exports, imports seen staying strong on resources boom

Indonesia’s exports and imports likely continued to surge in August, driven by high prices of the country’s main commodities like coal and palm oil.

A survey of 18 economists forecast the economy’s August trade surplus had shrunk to $2.36 billion from $2.59 billion in July.

Southeast Asia’s biggest economy has been enjoying an export boom on the back of robust commodity prices, allowing for a trade surplus every month since May of 2020.

Economists expected 36.9% annual growth in August exports, accelerating from 29.32% in the previous month. August imports were seen rising 45.1% on a yearly basis, compared with 44.44% in July.

Some economists have said high commodity prices and a global economic recovery will likely allow resource-rich Indonesia to book big export earnings for the remainder of the year.

However, with the country relaxing some COVID-19 curbs since August, analysts also expect imports to rise.