According to a Reuters survey, Indonesia's trade surplus fell in May as exports fell

Image: Reuters Berita 24 English - According to a Reuters poll released on Tuesday, Indonesia's trade surplus decreased sharply in May a...

Image: Reuters

Berita 24 English - According to a Reuters poll released on Tuesday, Indonesia's trade surplus decreased sharply in May as a result of a decline in exports following the government's restriction on the shipment of palm oil products, while imports were projected rising more fast.

In the poll, eighteen experts predicted a $3.83 billion trade surplus in May, less than half of April's record $7.56 billion surplus.

Indonesia, the world's largest exporter of palm oil, halted exports for three weeks until May 23, and shipments have been difficult to resume since then due to red tape. Palm oil products account for roughly 14% of the country's exports.

Exports are expected to climb 38.69 percent on a year-over-year basis in May, slower than April's 47.76 percent, while imports are expected to grow 32.8 percent from a year ago, compared to April's 21.97 percent.

High global commodity prices have continued to support up exports, according to Faisal Rachman, an economist at Bank Mandiri, who expects a $5 billion surplus in May. However, as the local economy improves, imports will speed up.

"In 2022, we estimate the current account balance to be in surplus. The trade surplus in this year's current account balance is still expected to diminish, according to our forecast ""Faisal explained."

On Wednesday, the May trade figures will be announced.