Trade Minister Zulhas: Trade Balance Surplus 4.99 BILLION US Dollars Evidence Of The Republic Of Indonesia's Ability To Hold Amid Crisis Threats

Minister of Trade, Zulkifli Hasan. (Photo: Doc. Ministry of Trade)

JAKARTA - Trade Minister Zulkifli Hasan emphasized that the achievement of the September 2022 trade balance surplus of 4.99 billion US dollars shows Indonesia's economic ability to survive in the midst of various crises. "This 4.99 billion US dollar trading surplus was recorded amid a number of pressures from global economic conditions such as the surge in inflation in a number of countries, the Russia – Ukraine conflict that has not subsided, tightening financial conditions in most areas, as well as the COVID-19 pandemic which has not fully recovered," said the Trade Minister in a statement in Jakarta, quoted from Antara, Wednesday, October 19. The September 2022 trade surplus contributed a non-oil and gas trade surplus of 7.09 billion US dollars and a oil and gas trade deficit of 2.10 billion US dollars. This surplus has become the achievement of the 29th monthly surplus in a row since May 2020. Cumulatively, the trade balance in January –September 2022 experienced a surplus of 39.87 billion US dollars. The January –September 2022 trade surplus was supported by a non-oil and gas surplus of 58.75 billion US dollars and an oil and gas deficit of 18.89 billion US dollars. This figure far exceeds the trade surplus achievement in 2021 of 35.33 billion US dollars. "Although commodity prices tend to slope, global demand weakens and there is a recession threat in 2023, Indonesia is expected to still be able to enjoy this year's trade balance surplus," said the Trade Minister. In September 2022, total exports reached US$24.80 billion, down 10.99 percent compared to August 2022 (MoM). This follows the same monthly downward pattern in previous years. The export was driven by a decrease in non-oil and gas exports by 10.31 percent MoM and oil and gas exports, which fell 21.41 percent MoM. Trade Minister Zulkifli Hasan said that China, the US and Japan were still the main markets for Indonesia's non-oil and gas exports in September 2022 with a non-oil and gas export value of 10.37 billion US dollars and a contribution of 44.17 percent to national non-oil and gas exports. Several main markets for Indonesia's non-oil and gas export destinations that experienced the highest growth in September 2022 (MoM) were Bangladesh with an increase of 39.22 percent; followed by Poland up 30.83 percent; Spain rose 20.00 percent; Germany rose 15.86 percent; and the Philippines rose 5.50 percent. Among the ten main Indonesian non-oil and gas export destinations in September 2022, only the Philippines experienced a monthly increase (MoM) which was mainly supported by an increase in exports of vehicles and their parts (HS 87) which rose 15.80 percent in MoM and metal ore, terak, and ash (HS 26) which were quite high in value. "The Ministry of Trade is optimistic to continue to encourage increased exports in the last three months so that non-oil and gas exports this year are expected to set a record high," said the Minister of Trade. Indonesia's total imports in September 2022 reached a value of 19.81 billion US dollars, down 10.58 percent compared to August 2022 (MoM), but it still increased 22.01 percent compared to last September (YoY). The decline in import performance in September 2022 was triggered by a decrease in non-oil and gas imports by 11.21 percent MoM and a decrease in oil and gas imports by 7.44 percent MoM,” explained the Minister of Trade. The decline in imports in September is thought to be due to the depreciation of the rupiah exchange rate against the US dollar which makes imports even more expensive. In addition, the decline in imports was also due to a decrease in domestic consumption as reflected in the forecast of the Bank Indonesia Real Sales Index (IPR) which contracted 0.9 percent on a monthly basis and the weakening of the Consumer Confidence Index (IKK) which weakened to 124.7 in September 2022.