Heaptalk, Jakarta — Indonesia’s down streaming policy which was implemented in the last few years is perceived as the right measure that generates positive result to the country’s trade balance. This indicator is reflected in the Indonesian export structure which shift from commodity exports to manufacturing exports, as shown in Indonesian trade balance which has been in surplus for 43 months consecutively.
This shift was confirmed by the Executive Director of the Center of Reform on Economics (CORE) Mohammad Faisal. According to him, the downstream policy starting to positively contribute to the national trade balance.
Statistics Indonesia (BPS) revealed that Indonesia’s trade surplus in November 2023 reached USD241 billion, even the total of surplus during January to November 2023 attained USD33.63 billion.
“Indonesia’s export structure has been transformed since the downstreaming policy is implemented, thus nickel processing product enhance the export contribution for base metal category. The product is classified as manufacture field that provide added value compare to exporting raw material,” stated the Head of BPS Banten, Faisal (01/24).
Align with Faisal’s view, the Minister of Industry Agus Gumiwang Kartasasmita voiced that Indonesia’s manufacture industry is more active until the end of 2023. This view is supported by the positive result of Indonesian Manufactures’ Purchasing Managers’ Index (PMI) released by S&P Global on December 2023 which was on 52.2 points or increase 0.5 point compared to its records on November.
“Thanks God, Indonesian Manufactures’ PMI remains of expansion phase for 28 consecutive months. This achievement is only attained by Indonesia and India which was capable to maintain its rate on above 50 points for over 25 months. This great performance should be maintained and escalated,” stated Minister Agus Gumiwang.
However, several policies have not run aligned with the expectation, such as the implementation of certain price of natural gas policy because many of industry players still do not received the benefits of gas price of USD6 per MMBTU.
