Indonesia trade balance deficit in 2012 was accounted for USD 1.7 billion, which is worse compared to its performance in 2011 that registered surplus USD 26.1 billion. The weakening of Indonesia balance of trade in 2012 is attributable to the decrease in the oil and gas’ trade balance from surplus of USD 0.8 billion in 2011 to deficit of USD 5.6 billion in 2012. Besides, the deteriorating of Indonesia trade balance also caused by the decrease of non oil and gas’ trade balance from USD 25.3 billion in 2011 to USD 4 billion in 2012.

There is a slight improvement in Indonesia trade balance in January 2013 compared to the December 2012. Indonesia trade balance deficit in January 2012 was USD 0.17 billion, which is a decrease from USD 0.19 billion trade deficit in December 2012.  The decrease in the trade deficit in January 2013 compared with December 2012 , is attributable to the decrease in the value of imports from USD 15.58 billion in December 2012 to USD 15.55 billion in  January 2013.

However, in comparison with January  2012,  Indonesian trade deficit in January 2013 shows a deterioration. Indonesian trade balance  in January 2012  registered a surplus of USD 1.02 billion, but became a deficit of  USD 0.17 billion in January 2013.  The trade deficit  in January 2013 was a result of an increase in the value of  imports  from  USD 14.55 Billion in January 2012 to USD 15.55 billion in anuary 2013, which was in addition to a decrease of  1.24%  in the value of  exports in January 2013 compared with value for Januari 2012.  This is an indication that the weak global economy contnues to depress Indonesian exports.

Indonesia trade balance of oil and gas registered a deficit of USD 5.6 billion in 2012, a significant decrease compared to 2011 which registered surplus of 0.8 billion. A deficit in Indonesia trade balance of oil and gas in 2012 was a result of import rising from USD 40.7 billion in 2011 to USD 42.6 billion in 2012. Additionally, a deficit in Indonesia trade balance of oil and gas is also attributable to an decrease of oil and gas export from USD 41.5 billion in 2011 to USD 37 billion in 2012.

In January 2013,  Indonesia trade  balance of oil and gas continued registering a deficit. A deficit in trade balance of oil and gas in January 2013 was accounted for  USD 1.43 billion, which was higher than USD 0.74 billion deficit  registered in December 2012. The rise in the trade balance of oil and gas in January 2013 is attributable to an increase of the value of oil and gas imports, acounted for 9% in December 2012.

Compared to trade balance of oil and gas in January 2012, it is evident that Indonesia trade balance in January 2013  shows a significant decrease. Trade balance of oil and gas decreased from a surplus of  USD 0.12 billion in January 2012  to deficit of  USD 1.43 billion in January 2013.  The deterioration in the trade balance of oil and gas was a result of a decrease in the value of oil and gas exports from USD 3.14 billion in January 2012 to USD 2.61 billion in  January  2013, as well as a  drastic increase in the oil and gas imports from  USD 3.02 billion in  January 2012  to USD 4.04 billion in  January 2013.

A surplus in Indonesia trade balance of non oil and gas has experienced a deterioration from USD 25.3 billion in 2011 to USD 4 billion in 2012. It is caused by the increase in the value of non oil and gas imports from USD 136.7 billion in 2011 to USD 149 billion in 2012, as well as a decrease in the value of non oil and gas exports from USD 162 billion in 2011 to USD 153 billion in 2012. A rising in the value of non oil and gas imports as well as a decrease in the value of non oil and gas exports has decreased a surplus in trade balance of non oil and gas in 2012.

The trade balance of  non oil and gas in January 2013 registered  a surplus. There was an improvement in  non-oil and gas trade balance from a surplus of USD 0.55 Billion in December 2012  to a surplus  of USD 1.25 Billion in January 2013. Improvement in the performance of the non oil and gas sector in January 2013, is attributable to among other factors,  a decrease in the value of non oil and gas imports and an increase in non oil and gas exports which occurred in the January 2013.

In comparison with  January 2012,  the trade balance of non oil and gas registered an increase in January 2013.  The trade surplus in the non oil and gas increased from USD 0.89 billion in January 2012 to USD 1.25 billion in January 2013. The rise in  trade balance  in the non oil and gas sector is largely as a result of an increase in non oil and gas exports from  USD 12.43 billion in January 2012 to USD 12.76 billion in January 2013.

In the fourth quarter 2012 current account deficit increased 45.5% compared to the third quarter, 2012.  Indonesia registered a currenct account transactions deficit of  USD 7.8 billion in the fourth quarter 2012, which represented an increase from USD 5.3 billion registered in the third quarter 2012. The rise in the current account deficit  is attributable to the decrease in the trade balance for goods which came as a result of the reduction in the surplus in non oil and gas  trade balance. This in general was caused by the performance of non oil and gas exports, which did not increase significantly when non oil and gas imports increased.

Overall, for the whole of  2012,  current account registered a deficit  of USD 24.2  billion. In comparative terms, the performance of current account in 2012  was  rather poorer than in 2011 which registsred a surplus of USD 1.7 Billion. The sub par  performance of current account transctions in 2012, was largely was caused by  a significant  decrease in  trade balance in goods, which was compounded by the deficit in the  trade balance in services that remains.

The surplus in the capital and financial accounts increased from USD 6.0 billion in the third quarter 2012 to USD 11.4 billion in the fourth quarter 2012.  The rise in the surplus in the fourth quarter 2012 was twice that registered in the previous quarter. The rise in surplus is attributable to the increase in other investments  from a deficit of USD 0.8 billion in the third quarter 2012 to a surplus of USD 6.7 billion in the fourth quarter 2012. The increase in other investments was  a result of a repatriation domestic savings abroad, a surge in savings for non residents in domestic banks, and an increase in other investment requirements in the public sector. Besides, the still large foreign direct investment inflows all contirbuted to the capital and financial transactions registered in the fourth quarter 2012. The rapid inflow of foreign funds reflects positive sentiments foreign investors have about Indonesian economy.  

In general, capital and financial accounts in 2012 registered an increase in the surplus by   83.6% from USD 13.6 billion in 2011 to USD 24.9 billion in 2012. The increase in the suprlus was largely attributable to rise in the suprlus in investment portfolio and direct investment,  and a surplus registered in other investments from deficit in 2011.

The surplus registered  in the balance of payments (BOP) showed an  increase in the fourth quarter 2012 compared with the previous quarter. In the fourth quarter 2012, the balance of payments surplus was USD 3.2 Billion,  which represented an increase from the BOP surplus of USD 0.8 Billion registered in the third quarter 2012. The increase in BOP  surplus  was largely arose from a surplus registered in the capital and financial account in the fourth quarter 2012.

However, in general Indonesian balance of payments showed a decrease in 2012 compared with the previous year.  In 2011  Indonesian payments of payments posted  a suplus of  USD 11.9 billion, which was far larger than  USD 0.2 Billion in 2012. The decrease in the balance of payments surplus is attributable to the current account deficit of  USD 24.2 billion in 2012.  Nonetheless,  the deficit in current account was offset by a surge in the suprlus on the capital and financial transactions which implied that overall, Indonesia registered a balance of payments suprlus of  USD 0.2 Billion in 2012.