Indonesia's Feb trade deficit seen as smallest in 5.0 months

JAKARTA, Mar 13 (Reuters): Indonesia's trade deficit is seen narrowing in February as exports continued to decline amid falling global demand and soft commodity prices, a Reuters poll showed on Wednesday.

The median forecast of 13 analysts was for a $700 million trade gap in February, smaller than January's revised $1.06 billion deficit - and the smallest in five months.

However, in every month starting in October the deficit has been wider than the poll forecast.

Imports in February are seen up 0.3 per cent from a year earlier, versus January's revised 2.08 per cent fall.

Exports are expected to contract 4.50 per cent, after falling 4.30 per cent in January.

DBS economists on Monday predicted continued weakness in exports "as global trade demand is still on the slide and prices of commodities remain weak, especially crude palm oil and coal", two key Indonesian exports.

Southeast Asia's largest economy is struggling to reduce its trade deficit, which hit a record high $8.5 billion last year.

Authorities have raised import tariffs and relaxed export rules to try to narrow the gap.