RI's Exports Skyrocket, Government Calls Russia-Ukraine War Not Having Much Effect

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The government through the Ministry of Finance (Kemenkeu) said that Indonesia's export performance in the March 2022 period achieved brilliant results with a total of 26.5 billion US dollars. The score rose 44.3 percent compared to the same period in 2021.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu said that this achievement was an achievement in itself in the midst of the turbulent world geopolitical situation. However, Febrio claims that this is not a barrier factor in Indonesia's export performance.

"In general, tensions between Russia and Ukraine have no direct effect on Indonesia's export-import performance, considering that the two countries are not major trading partners for us," he said in a press statement, Wednesday, April 20.

According to Febrio, the value of exports continues to grow in line with the movement of global commodity prices, which are still on an upward trend since 2021 and are now escalating further due to geopolitical conflicts.

"Export growth is expected to contribute positively to the Indonesian economy in 2022, which is currently recovering more and more solidly. The increase in exports will have an impact on investment activity and domestic consumption," he said.

Furthermore, Sri Mulyani's subordinates projected that if Indonesia's economic recovery is maintained it is even estimated to strengthen in 2022. He said, exports will be the main driver of economic growth in 2021 when household consumption is under pressure due to the pandemic.

"Entering 2022, in addition to strengthening consumption and investment activities in line with the success of controlling the omicron wave, the contribution of exports to economic growth in the first quarter of 2022 is also estimated to be quite significant," he said.

For information, as of April 18, 2022 for the two largest export commodities, namely coal and vegetable oil, the prices increased by 82.3 percent and 26 percent, respectively. It is also expected to have a multiplier effect on the performance of the relevant sectors in the country.

Meanwhile, export projections are expected to continue to strengthen and support Indonesia's trade balance in line with the ongoing upward trend in commodity prices.

"The government will continue to monitor and ensure the availability of energy and food for domestic needs amidst high global commodity prices," closed Febrio.