JAKARTA. The record of trade balance surplus in April of USD 7.56 billion is predicted to create another surplus in the current account balance of 0.4% of GDP (Gross Domestic Product) by the end of 2022.
This projection is laid out by a Senior Economist of DBS for Eurozone, India, and Indonesia, Radhika Rao, who believed that the Russia-Ukraine conflict has driven the global commodity price upward.
According to Rao, the global commodity price surge will lead to domestic inflation. Indonesia, as an oil importer, is expected to end up with a deficit in the oil and gas sector. Fortunately, it will be countered by strong gains in the non-oil and gas sector, particularly in the coal, palm oil, nickel, base metal, and other sectors.
The trade of balance of Indonesia in April 2022 reflected a surplus of USD 7.56 billion, resulting from the total export value of USD 27.32 billion and a declining import value of USD 19.76 billion. The export activities, which is as strong as ever, will help to positively shift the trade surplus and current account balance surplus. “Thus, the current account balance in 2022 will arrive in a moderate surplus of 0.4% of GDP,” Rao confirmed in a press release yesterday (18/5). (AM/ZH)