Indonesia commodity index slumps 20%

Coal and palm oil prices dropped 30% and 16% respectively since 1Q11.

According to DBS Group Research, commodity prices have not been favorable to Indonesia for the past several quarters. Coal prices have dropped by around 30% since 1Q11, palm oil prices are down by around 16%. The broader CRB index is down by 20%. This has a large impact because commodities make up around 50% of exports.

Here's more from DBS:

Indeed, the non-oil commodity trade balance has narrowed from a peak of USD 8.7bn in May 2011 to USD 6.8bn in April 2012 as price effects drove non-oil commodity exports down from USD 9.0bn to USD 7.7bn over the same time period. Had commodity prices been 10% higher, the country could have avoided the trade deficits registered in April and May.