Jakarta - Indonesia posted a trade surplus for the fifth consecutive month in April, official data showed Friday, but economists warned there were signs that growth momentum was weakening.
The $450 million surplus in Southeast Asia's biggest economy was well down from the revised $1.03 billion surplus enjoyed in March as exports and, particularly, imports, have fallen significantly.
Imports plunged 22.31 percent to $12.63 billion year on year in April, according to the Statistics Agency, while exports fell 8.46 percent to $13.08 billion.
The fall in imports comes despite the start next month of the Muslim festival of Ramadan, which usually sees demand peak. Indonesia is the world's most populous Muslim country.
However, Citi's economist Helmi Arman said the soft readings were "a sign of continued weakness in GDP growth going into the second quarter, following disappointing growth in the first quarter and continued shortfalls in tax collection".
Arman added that the central Bank Indonesia could cut interest rates again when it holds a meeting next week.
"We expect BI to cut rates 25 basis points in May, earlier than our previous expectation (of) June," Arman said.
The bank cut rates in February, by 25 basis points, for the first time in three years in a bid to boost the economy as inflation slowed on the back of falling fuel prices.
Economic growth came in at 4.71 percent year-on-year in January-March, its slowest pace since the start of 2009 and well below the government's target of 5.7 percent for this year.
AFP
