Appointed To The Manufacturing Sector, Indonesia's Export Performance Supported By The State Request For Trade Partners

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. (Photo: Doc. Antara)

JAKARTA - Indonesia's export performance, which grew 12.3 percent in October 2022 on an annual basis, was supported by demand from trading partner countries with strong economic performance.

"This continued increase in export performance is also supported by demand from trading partner countries with strong economic performance, especially India, which is still recording an expansive Manufacturing PMI," said Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu in an official statement quoted by Antara, Wednesday, November 16.

Cumulatively, during January to October 2022, exports grew by 244.14 billion US dollars, an increase of 30.97 percent compared to the same period in 2021 due to increased exports of leading commodities such as palm oil and mineral fuel.

Cumulative non-oil and gas exports from January to October 2022 also recorded very high growth of 30.61 percent (ytd).

Meanwhile, in the same period, oil and gas export growth reached 37.4 percent (yoy) with the mining sector recording the highest growth of 82.68 percent (yoy), followed by the manufacturing sector which grew to 20.4 percent (yoy), and the agricultural sector grew 14.17 percent (yoy).

"The export growth that occurs in all sectors is an indication of the equitable continued economic recovery (broad-based), especially the manufacturing sector which contributes the most to national exports," added Febrio.

On the other hand, Indonesia's import performance in October 2022 also still grew positively by 17.44 percent (yoy), an increase of 19.14 billion US dollars, in line with the increase in national economic activity.

The increase in economic activity is also reflected in the Indonesian Manufacturing Purchasing Managers Index (PMI) figure in October 2022 which is still in the expansion zone of 51.8 percent.

The strong export performance in October 2022 prompted Indonesia's trade balance to record a surplus of 5.67 billion US dollars, higher than the surplus in September 2022 which amounted to 4.97 billion US dollars.

This achievement continues the trade balance surplus trend that has occurred for 30 consecutive months.

The government will continue to anticipate and mitigate various global economic dynamics that have the potential to affect Indonesia's export demand performance, amid the slowdown in manufacturing sector expansion in several major trading partner countries in October 2022.

"We also see an increasing risk and uncertainty in global economic prospects and a downward trend in commodity prices that follow suit. In the future, the government will continue to encourage various export diversification efforts," closed Febrio.