Indonesian surplus!

It has been announced in Indonesia today that its trade balance altered back to surplus during May, reporting a burst of further positive data - a boost for the top economy of South East Asia following a recent slowdown.

According to the statistics agency, the surplus was slightly higher than anticipated at $70million, following a deficit of nearly $2billion during April as exports were affected by a controversial mineral ore export ban.

The trade balance is especially closely observed by investors, with economists claiming the surplus is efficient during the high uncertainty prior to an increasingly tense presidential election next week.

Manufacturing activity also expanded, as reported by HSBC's manufacturing purchasing managers' index for Indonesia.

It rose to 52.7 during June, from 52.4 during the month before, the highest reading since the survey begun April 2011. The reading above 50 signals growth and as a reading below 50 would be contraction.

Indonesia's Close Ties with the EU!

Today, an estimated 6,351 Europeans reside in Indonesia, with 13.8% settling in the country. This is according to the Ministry of Manpower and Transportation report on May 10^th. Indonesia’s economic boom and the advent of the European Union have led to increased cultural exchange and strengthened ties. According to the Indonesia Diaspora Network report December 2013, 185,512 Indonesians made the Old Continent their home; this is in addition to around 700,000 people of mixed or Indonesian descent within the Netherlands.

Indonesia central to ASEAN - High potential for international trade

The three day World Economic Forum (WEF) on East Asia 2014 commenced in Manila yesterday, receiving over 600 leaders, entrepreneurs and thinkers together.

Issues will be discussed, including the optimal way to compose the 10 member Association of South East Asian Nations for the ASEAN Economic Community planned for next year, which is to allow freer flows of capital and lower trade barriers.

Collectively, the ASEAN member states structure one of the largest economies of Asia, with gross domestic product (GDP) at approximately $2trillion and a population of over 600million people.

Indonesia, the largest economy of South East Asia, may benefit from freer trade under the AEC. Its automotive sector rival’s Thailand’s, as it assembles and ships vehicles locally and internationally. Japanese vehicle producers have recently been raising their investments in Indonesia, acknowledging the demand for cars, motorcycles and trucks remains strong. The nation’s youth population, alongside low labour costs makes it an appealing investment location for overseas companies including the Foxconn Technology Group, who produce the iPhones and iPads for Apple.