REPUBLIKA.CO.ID, JAKARTA - Trade deficit worsens industrial sector in Indonesia. Industrial sector in trade balance deficit in 2012 reached 23 billion USD after the sector recorded a surplus of 28 billion USD in 2007.

Researcher of Institute for Assessment, Research and Economic Development in Chamber of Commerce and Industry, Ina Primiana said Indonesia suffered deficit with almost all trading partners.

Deficit was caused by declining export volume recorded at 8.63 percent in May - June 2013 and imports fell 6.44 percent. In May-June 2013, import of capital goods declined 9.54 percent, raw materials declined 5.82 percent and consumer goods declined 5.73 percent.

Primiana recommended several ways to overcome trade balance deficit in industrial sector. Fist, government should reform the structure immediately to avoid decline in industry and export performance by improving supporting facility, public services, regulations and incentives rights.

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