Steel Exports Increase, The Trade Minister: Demand From China And Malaysia

JAKARTA - Minister of Trade Agus Suparmanto said the trade balance in 2020 showed good results and even increased.

It is recorded that from January to September this year there was a surplus in Indonesia's trade balance of US $ 13.5 billion due to increased export activities in the non-oil and gas sector, such as iron, steel to plastic and plastic goods.

"Indeed, the trade balance exceeds 2017 and the highest achievement since 2012. Several commodities affecting non-oil and gas exports that experienced an increase in September 2020 include iron and steel, vegetable fats and animal oils, vehicles and parts, then machinery and electrical equipment, as well. plastics and plastic goods, "said Agus in a press conference broadcast on the BNPB YouTube account, Monday, November 9.

Some of the export commodities he mentioned contributed at least 34.02 percent of the total non-oil and gas exports carried out by Indonesia and recorded an accumulative increase of US $ 0.7 billion.

Agus explained that the increase in steel exports was due to the high demand from China and Malaysia. "This increase is due to the recovery of the domestic industry in the country," he said.

In addition, the increase in exports also occurred due to the increase in the price of crude palm oil (CPO) or palm oil that occurred in the international market, including the increase in this commodity in China and India.

"This then becomes one of the factors that sustain us and this is a positive signal for us," he said.

Furthermore, he then explained that the trade balance surplus is clearly influential to provide positive signals and export trends. Because this shows that Indonesia is able to survive in the midst of a pandemic even though he does not deny that there is deep import pressure.

"Raw materials are depressed but we still maintain how to facilitate these raw materials and this has an effect on national economic recovery by providing motivation for domestic business actors," he said.

This trade balance surplus, he continued, should also increase exports abroad. Especially for the micro, small and medium enterprises (UMKM).

"So this is very positive because our GDP towards consumption is quite large and these are the factors that we encourage," he concluded.