The Global Slowdown Has a Wider Impact

KOMPAS/ERWIN EDHI PRASETYA

Production activities take place in the garment division of PT Sri Rejeki Isman Tbk or Sritex in Sukoharjo, Central Java, on Wednesday (13/02/2019). The textile industry still has many opportunities in the domestic and export markets but faces challenges in terms of efficiency and global competition.

JAKARTA, KOMPAS – Indonesia suffered a trade deficit of US$1.16 billion in January this year. The global economic slowdown and the decline in global demand are considered to have contributed to the deficit in the trade balance. The government, therefore, needs to work extra hard to boost exports and reduce the surging imports.

Non-oil and gas trade suffered a deficit of $704.7 million, while oil and gas trade recorded a deficit of $454.8 million. If compared with the figure in January 2018, oil and gas trade in January this year actually improved as the deficit declined from $935.6 million. However, non-oil and gas trade worsened last month because there was a surplus of $179.6 million in January last year.