REPUBLIKA.CO.ID, JAKARTA - Indonesia on Friday reported a larger-than-expected trade surplus and a further slowing in inflation, brightening the picture for Southeast Asia's biggest economy.

The data came ahead of a report on Monday expected to show the economy grew an annual 5.60 percent in the first quarter, according to a Reuters poll, a touch slower than 5.72 percent in the prior quarter but within the central bank's target of 5.5-5.9 percent this year. The upbeat results suggest the economy began the year on a steady footing, after growth hit a four-year low in 2013 on a slowdown in exports and consumption.

"We are looking for a firt quarter real GDP growth print of around 5.6 percent (year-on-year), driven by a combination of weak investment growth but resilient private consumption spending, thanks to pre-election spending," Credit Suisse said in a research note.

Indonesia had a trade surplus of 670 million USD in March, the statistics office said, more than the 500 million USD surplus expected by analysts though narrowing from 840 million USD in February.

Exports unexpectedly rose 1.24 percent from a year earlier, bolstered by stronger palm oil shipments and demand from China and Japan. The median forecast of analysts was for a drop of 1.3 percent. It was the first increase since December.

Imports fell 2.34 percent, less than expectations for a 4.5 percent year-on-year decline. The rupiah rose 0.3 percent to 11,520 per USD after the trade data.

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