WNAM REPORT: Indonesia posted a surge in trade surplus of 4.3 billion USD in May 2025, mainly driven by non-oil, gas commodities, and steel, according to Statistics Indonesia (BPS).
The US was the largest contributor to Indonesia’s trade surplus over the first five months of the year with 7.08 billion USD, up 31% compared to that recorded in the Jan-May period last year.
Major exports from Indonesia to the US included electrical machinery, footwear, garments and palm oil. Notably, in the first quarter, the trade surplus with the US alone reached 4.32 billion USD, up from 3.61 billion USD in the same period last year.
The significant increase came amid proposed tariffs from the US. Indonesia has responded by negotiating increased imports of food, fuel and capital goods from the US to balance trade, while easing some import restrictions.
According to Hosianna Evalita Situmorang, an economist at private lender Bank Danamon, the surge in exports was stronger than expected, explaining that temporary front-loading during the 90-day US tariff pause under President Donald Trump’s trade stance boosted momentum.
However, she pointed out that despite the contracting PMI, imports also grew for the fourth consecutive month, indicating stable domestic demand and preemptive inventory building.
Meanwhile, Pudji Ismartini, deputy for distribution and services statistics at BPS, said that the trade balance surplus was mainly driven by non-oil and gas commodities, which contributed 5.83 billion USD. However, oil and gas commodities still recorded a deficit of 1.53 billion USD.
The Indonesia Manufacturing Purchasing Managers’ Index (PMI) from S&P Global, released on July 1, dropped to a reading of 46.9 in June from 47.4 in May, indicating a further deterioration in the health of goods-producing industries.
The report showed a continuing decline in materials purchases and inventory, with both raw materials and finished goods falling for a third straight month.
