The Surplus Retrade Balance, Minister Of Trade Zulhas: Highest Record Print Export Driven By The Industrial Sector

Illustration (Photo: Doc. Antara)

JAKARTA - Trade Minister Zulkifli Hasan (Mendag Zulhas) revealed that Indonesia again scored a trade surplus of US$5.76 billion in August 2022.

Zulhas said the August trade surplus was contributed by a non-oil and gas trade surplus of 7.74 billion US dollars and a oil and gas trade deficit of 1.98 billion US dollars.

"The trade surplus in August 2022 continues its consecutive surplus trend since May 2020. Indonesia has still managed to maintain a record trade surplus for 28 consecutive months," he said in an official statement, Friday, September 16.

Furthermore, Zulhas explained, Indonesia's non-oil and gas trade surplus in August 2022 is still driven by trade with several major trading partner countries.

India became a trading partner country that contributed the largest surplus with a value of 1.81 billion US dollars.

Then, followed by the United States with 1.65 billion US dollars.

The third country that contributed the largest surplus was the Philippines with a value of 1.09 billion US dollars.

Cumulatively, the trade balance for the period January to August 2022 experienced a surplus of 34.92 billion US dollars. This figure far exceeds the achievement of the trade surplus for the same period in 2021 which only reached 20.71 billion US dollars.

Still said Zulhas, the trade surplus from January to August 2022 was supported by a non-oil and gas surplus of 51.67 billion US dollars, and an oil and gas deficit of 16.76 billion US dollars.

"With the high trade surplus from January to August 2022, Indonesia is expected to create a record trade surplus beyond 2021," said Zulhas.

Highest Export Record in History

Zulhas said exports in August 2022 also recorded a record high in history with a value of up to 27.91 billion US dollars.

This value broke the previous record achieved in April 2022 which amounted to 27.32 billion US dollars.

Zulhas said that the export performance in August was supported by Indonesia's non-oil and gas exports worth US$ 26.19 billion and oil and gas exports of US$1.72 billion.

When compared to July 2022, export performance in August 2022 increased by 9.17 percent (MoM).

This month, continued Zulhas, non-oil and gas exports increased by 8.24 percent (MoM), while oil and gas exports rose by 25.59 percent (MoM).

Meanwhile, when compared to August 2021, total exports in August 2022 increased by 30.15 percent (yoy).

This high export growth was driven by a significant increase in oil and gas exports by 64.46 percent and non-oil and gas exports which increased by 28.39 percent.

Based on its structure, exports of the industrial sector dominated in August 2022 with a contribution of 70.91 percent of Indonesia's total exports and an increase of 13.49 percent (MoM).

"The high contribution and increase in exports in the industrial sector is a manifestation of the quality of Indonesia's exports which have added value and are competitive. For this reason, the Ministry of Trade will continue to maintain the momentum of export growth in the industrial sector in encouraging the performance of national exports in 2022," he said.

In August, said Zulhas, several main non-oil and gas export products that experienced the highest increase compared to July 2022 (MoM), namely, vegetable fat and oil (HS 15) rose 25.40 percent, iron and steel (HS 72) rose 14.38 percent, machinery and electrical equipment and parts (HS 85) rose 21.16 percent, and vehicles and parts (HS 87) rose 11.54 percent.

"In the midst of the decline in the prices of iron and steel commodities (HS 72) as well as vegetable fats and oils (HS 15), the demand for exports of these two commodities has increased and has become a driving force for Indonesia's non-oil and gas exports in August 2022," he concluded.