Non-oil and gas export value reached US$253.61 billion in January-November 2022, exceeding the achievement in 2021 of US$219.25 billion.
Heaptalk, Jakarta — The achievements of the trade sector throughout 2022 have given optimism to welcome 2023 despite the challenges and dynamics of the global economy, as stated by the Minister of Trade Zulkifli Hasan at a press conference in Jakarta (1/2).
“In 2023, non-oil and gas export is targeted to reach US$289.76 billion,” said Zulkifli. This target is assessed based on strong export performance in 2022. Indonesia is one of the few countries that maintain an economic recovery in 2022 while several of Indonesia’s main trading partners, including China, the United States, and the European Union, experience weakening economic growth in Q2 2022.
During the recovery, exports became one of the main components driving economic growth. The contribution of goods and services exports increased from 20.46% in Q2 2021 to 26.23% in Q3 2022 of the total GDP. Growth in exports of goods and services was recorded twice as the highest in 2022, specifically in the first and second quarters with a growth of 16.22% YoY and 19.74% YoY.
The non-oil and gas export value reached US$253.61 billion in January-November 2022, exceeding the achievement in 2021 of US$219.25 billion. The increase in commodity prices, spanning nickel and coal, still becomes a major factor in the impact of the commodity supercycle era. In January-November 2022 exports of refined nickel soared by 398.39% YoY, followed by coal by 70.17% YoY.
Zulkifli said that despite the global downturn, during this period Indonesia’s exports of manufactured products still grew, spanning steel 37.11% YoY, footwear 29.27% YoY, as well as vehicles and parts 27.29% YoY.
“Overall, the achievement of export performance which was higher than imports has managed Indonesia’s trade balance surplus for 31 consecutive months since May 2020. In January-November 2022, the surplus reached US$50.59 billion. This figure is a new historical record for Indonesia as it surpassed the previous highest record in 2006 with a surplus value of US$39.73 billion,” explained Zulkifli.
“Apart from the positive records, there is also a lot of homework as Minister of Trade that has to be completed. For that, we must remain optimistic in welcoming 2023. The key is collaboration and cooperation,” said Indonesian Trade Minister.
In 2023, the Ministry of Trade will be proactive, responsive, and anticipatory to the dynamics of the global economy and trade which are full of uncertainties by encouraging the added value of traded products.
Efforts to raise added value will be carried out through industry downstreaming, green trade transition, expansion, and penetration into non-traditional export markets, including Africa, South Asia, and the Middle East. Zulkifli and his staff will also improve international market access through trade agreements, exhibitions, and trade missions.
Encouraging digitalization in the domestic market
Further, the ministry will also encourage digitalization in the domestic market. “Strengthening the domestic market will also continue to be carried out by maintaining price stability and availability of staple goods, increasing and empowering MSMEs through digitalization, utilizing trade remedies instruments, and selectively controlling imports,” said Zulkifli.
Protecting domestic consumers are also the focus of the ministry. Throughout 2022, the ministry has supervised 18 steel business actors and sealed several steel products that did not meet the quality requirements of the Indonesian National Standard (SNI) worth Rp41.68 billion in Serang, Banten.
The ministry also has supervised and succeeded in bringing down 37,488 trading links in marketplaces as they do not comply with Government Regulation No. 80 of 2019 on Trading Through Electronic Systems (PMSE).
“With more than 270 million people in Indonesia as consumers, supervision of traded products is crucial to ensure consumers are safe and are not harmed,” concluded Zulkifli.
