Indonesia's trade surplus narrows in July

Indonesia posted a lower trade surplus in July as exports of oil, gas and other commodities fell.

The national statistic bureau announced on Monday that the surplus decreased to adjusted 0.59 billion U.S. dollars last month compared with 0.90 billion U.S. dollars in the preceding month as the total exports fell faster than the total imports' decline.

Exports in July was down 17.02 percent to 9.51 billion U.S. dollars on year, and imports fell 11.56 percent to 8.92 billion U.S. dollars in the month on yearly basis, Suryamin, head of the bureau said.

Oil and gas exports decreased 15.89 percent to 1 billion U.S. dollars in July, on monthly basis, he said.

"The Islamic festivity holiday led oil and gas production to be halted and the global economic slowdown still weakened prices," Mr. Suryamin told a press conference at the bureau headquarters, referring to the Eid al-Fitr festivity on July 6 to 7.

For the first seven months, Indonesia posted 4.2 billion U.S. dollars surplus, the bureau said.

Indonesia expects the shipments of products overseas to rise 1 to 2 percent next year on expectation of higher prices and demand of commodities, according to former finance minister Bambang Brodjonegoro.

Indonesia is the world's biggest exporter of crude palm oil, thermal coal, and the world's third biggest exporter of rubber and cocoa, as well as home to the world's second-biggest copper mine.

The country imported most of raw materials for manufactured products for exports.

The prospect of the U.S. Fed Reserve dovish policy amid stimulus launched by the bank of Japan is expected to spur global demand on commodities. Enditem