From surplus to deficit: Indonesian trade imbalance a worry

By CLIFFORD FAIPARIK
A senior Commerce and Industry officer is concerned that Papua New Guinea’s exports earnings to Indonesia have dropped dramatically
from surplus to deficit within four years.
Assistant secretary for market access and free trade agreement Frazer Murray said PNG’s export earnings to Indonesia in 2014 were K1063.9 million and imported goods from Indonesia were K375.5million.
“That was a trade surplus of K688.4 million, but then, trade dropped and we started having trade deficit with Indonesia from 2015 to 2017.”
“The relevant government officers from both countries, in relation to trade, need to address this trade
imbalance when Indonesia
is the only closest neighbour among all our international trade partners,” he said.
Murray said during the joint forum on PNG-Indonesia Trade Tourism and Investment Promotion in Port Moresby on Friday that the deficit started in 2015 when PNG’s export earnings were K123 million and import payments were K423.49 million.
“In 2016, export earnings were K35.7million and import payments were K503.28 million: The trade deficit was K467.58 million,” he said.
“In 2017, PNG’s export earnings were K80.28 million and import payments were K546.43 million: The trade deficit was K466.15 million.”
Murray said PNG exported cocoa, vanilla, tea, logs, sawn timber and scrap metal between 2006 to 2017.
It imported a variety of goods from Indonesia including batteries, machinery, electrical appliances, tyres and tubes, soap and detergent, textiles, paper, instant noodles, and many others.
Indonesian Ambassador Ronald Manik said that there was so much potential for trade between both countries which had not yet been fully developed.