RHB maintains a cautious view on Indonesia's external trade outlook in 2H after the country posted its first monthly trade deficit since 2020 in May, economist Wong Xian Yong says in a note. Weaker commodity prices, softer external demand and stronger imports are expected to narrow the trade surplus, he says. Palm oil exports could be constrained by higher domestic biodiesel consumption, while lower nickel prices might weigh on export values despite a recovery in shipment volumes, he reckons. Changes in U.S. trade policy and tighter government oversight of commodity exports could add volatility to trade flows, he adds. (yingxian.wong@wsj.com)
Dow Jones Newswires
Indonesia Trade Outlook Turns Cautious After First Deficit Since 2020 — Market Talk
- Sources
- Dow Jones Newswires
- Markets
- Economy
- Active symbols
- ECONOMICS:IDBOT
- Language
- English
RHB maintains a cautious view on Indonesia's external trade outlook in 2H after the country posted its first monthly trade deficit since 2020 in May, economist Wong Xian Yong says in a note. Weaker commodity prices, softer external demand and stronger imports are expected to narrow the trade surplu…