"Both the non-oil and gas as well as the oil and gas trade balances contributed to the overall trade deficit. Cumulatively, from January-October 2018, the trade deficit stands at $5.51 billion," Agusman noted in a statement received here on Monday.
The non-oil and gas trade deficit was recorded at $0.39 billion in the reporting period, thus reversing the previous $1.32 billion surplus after the non-oil and gas import growth surge exceeded the uptick in corresponding exports, he stated.
Non-oil and gas imports increased $2.39 billion (mtm) the month earlier, driven by raw materials and capital goods such as machinery and mechanical appliances, electrical machinery and equipment, iron and steel, plastics and articles of plastic, as well as food industry waste/leftovers.
Meanwhile, non-oil and gas exports increased $0.68 billion (mtm), led by manufacturing commodities including vehicles and components, jewelry/gems, footwear, as well as inorganic chemicals.
Cumulatively, from January-October 2018, the non-oil and gas trade surplus stood at $5.22 billion.
The oil and gas trade deficit increased from $1.00 billion in September 2018 to $1.43 billion in October 2018.
The main contributor to the larger oil and gas trade deficit was a $0.62 billion (mtm) influx of oil and gas imports due to more shipments of crude oil, refined products, and gas, he explained.
On the other hand, oil and gas exports enjoyed comparatively more subdued gains, increasing $0.20 billion (mtm) in the reporting period on the back of gas exports as crude oil and refined products experienced declines.
Cumulatively, from January-October 2018, the oil and gas trade deficit stood at $10.74 billion.
BI cites persistent strong domestic demand, particularly investment, for the larger current account deficit in October 2018.
"Vibrant investment activity is expected, however, to increase economic productivity and competitiveness moving forward," he remarked.
As of October 2018, BI projects the current account deficit to remain below the manageable threshold of 3 percent of GDP.
Editing by Azis Kurmala. Suharto