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Indonesia reported a trade surplus of $4.33 billion in March, a figure that beat expectations and marked the widest surplus in four months, buoyed by a jump in palm oil and nickel exports along with accelerated shipments ahead of the imposition of US tariffs.
A Reuters poll of analysts had forecast a surplus of $2.64 billion for March. The reading is the largest since November 2024, according to LSEG data.
Exports from the resource-rich nation have been recovering from lows hit after the end of the 2022 commodities boom, though they could soon be hit by slowing global growth amid the trade war triggered by US tariffs.
Indonesia was among the countries targeted by US President Donald Trump's administration with tariffs exceeding 10%, facing a 32% levy that has since been suspended for 90 days.
Several Indonesian ministers have been in Washington since last week attempting to negotiate a deal to avoid the tariffs, proposing increased purchases of US goods to narrow the trade deficit with the United States.
Exports rose 3.16% year-on-year in March to $23.25 billion, according to official data released on Monday, defying economists' forecasts in a Reuters poll for a 3.40% decline.
Palm oil exports surged nearly 41% compared with March 2024 to reach $2.19 billion, while nickel exports climbed 12% to $2.38 billion, helping offset a decline in coal shipments.
Total imports came in at $18.92 billion, up 5.34% year-on-year, compared with forecasts of a 6.6% rise.
Josua Pardede, an economist at Bank Danamon, described March's surplus as "strong," supported by a rise in exports to the United States. He added that "exporters accelerated their shipments ahead of Trump's retaliatory tariffs, causing severe congestion at Tanjung Priok port (Jakarta's main port), while shipping bookings at Chinese ports fell by between 640,000 and 800,000 containers, signalling the early effects of the trade war."
Data showed that exports of electronics, footwear and knitted apparel to the United States each rose by more than 15% in the first quarter of the year, with these three products among Indonesia's largest exports to the US market.
The trade surplus with the United States was also the biggest contributor to Indonesia's overall trade surplus in the January-March 2025 period, reaching $4.32 billion, up from $3.61 billion in the same period of 2024. Indonesia's total trade surplus for the first quarter stood at $10.92 billion.
Source: Reuters