Airlangga Glad Trade Surplus Reaches Record High: Impressive, Indonesia Is Getting Stronger

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. Antara)

JAKARTA - The government through the Coordinating Ministry for Economic Affairs assesses that Indonesia's exports and imports in 2021 have achieved positive achievements in the trade balance.

It is stated that in December 2021 there will be a trade surplus of 1.02 billion US dollars. The book was the largest monthly surplus since May 2020 or for 20 consecutive months.

Coordinating Minister for the Economy Airlangga Hartarto revealed that in full year 2021, Indonesia's trade balance surplus reached 35.34 billion US dollars.

“In the midst of various global uncertainties, Indonesia was still able to record an impressive performance on the trade balance. This performance will increase the resilience of the external sector so that it will be stronger in facing various challenges that are expected to continue this year," he said in an official statement, Tuesday, January 18.

According to Airlangga, last year's moncer results were supported by exports which amounted to 231.54 billion US dollars or double digit growth of 41.88 percent year-on-year (yoy).

"Downstreaming of superior commodities, such as derivatives of CPO products, has succeeded in boosting Indonesia's export performance," he said.

In addition to CPO, downstream nickel commodities also strengthened export performance with growth of 58.89 percent yoy to 1.28 billion US dollars.

As for the import side, it was explained that there was an increase to 196.20 billion US dollars or grew 38.59 percent yoy.

Indonesia's import structure in 2021 is dominated by imports of raw and auxiliary materials, amounting to 75.12 percent of total imports.

Followed by 14.59 percent of capital goods, and 10.29 percent of consumer goods. It is claimed that this structure indicates that the Indonesian economy is productive through the creation of greater added value, both for domestic needs and for re-export.

“This achievement indicates that Indonesia's economic recovery continues. It is also reflected in the increase in the creation of added value in the manufacturing sector," he said.

In addition, the level of Indonesia's Manufacturing Purchasing Managers' Index (PMI) was also observed to be in the expansion zone of 53.5 in December 2021, continuing the expansion level that had occurred for four consecutive months.

"Indonesia's PMI level in December 2021 is even better than several ASEAN countries, such as Malaysia (52.8), Vietnam (52.5), the Philippines (51.8), Thailand (49.5), and Myanmar (49)," he said.

Meanwhile, related to the easing of mobility in line with the decline in COVID-19 cases, Airlangga said this would provide smooth economic activity so as to encourage an increase in aggregate demand. As a result, the manufacturing sector is also stimulated to increase its production output.

"Nevertheless, the government remains wary of the phenomenon of increasing cases of the Omicron variant, which is expected to reach its peak in late January or early February 2022," Airlangga concluded.