JAKARTA - The government, through the Coordinating Minister for the Economy, Airlangga Hartarto, emphasized that the current surge in the prices of various important commodities has brought Indonesia its own advantages.
Apart from being a source of state income in terms of export levies, the soaring value of commodities also indirectly increases Indonesia's bargaining power in terms of attracting investors. According to Airlangga, Indonesia has recorded a trade surplus for 22 consecutive months since May 2020.
"This increase in the trade balance will make the national economy recover, so it is hoped that it will attract investors," he said in an official statement quoted on Friday, April 8.
Airlangga explained that Indonesia's credibility in the eyes of investors in 2021 is getting better as indicated by the realization of investments exceeding the target of Rp 901.02 trillion.
"The government will also optimize the G20 Presidency for the national economic recovery process," he said.
He said Indonesia's G20 presidency has the potential to develop global trade. The development is carried out with various supports, including the promotion of a sustainable palm oil industry through a downstream strategy.
It is stated that downstreaming is an effort to increase the added value of commodities by processing raw goods into semi-finished goods or finished goods.
"Through this downstreaming, it is hoped that it can increase the competitiveness of export commodities at the global level and strengthen the domestic manufacturing industry," he said.
Meanwhile, other support provided by the government to improve commodity competitiveness is by developing Export-Based Horticultural Bonded Zones.
For information, the Bonded Zone is a combination of the provision of capital and technology by companies as well as land and labor by farmers. This combination is carried out so that the quality of the commodities produced can be further competitive so that they are able to penetrate the international market.
"Besides increasing competitiveness, we are also trying to increase global commodity exports through the provision of trade and investment promotion facilities as well as socialization of the use of Local Currency Settlement, which is the government's response to reducing the impact felt by exporters due to the pandemic," concluded Coordinating Minister Airlangga.
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