The Government Believes That The Value Of Indonesia's Exports Will Grow 12.8 Percent In 2023

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian government projects that the export value in 2023 will grow by 12.8 percent. This was conveyed by Coordinating Minister for the Economy (Menko Perekonomy) Airlangga Hartarto at the Presidential Palace, Jakarta, Wednesday, January 11.

This figure is indeed slowing down compared to export growth in 2022 which reached 29.8 percent, but according to the Coordinating Minister for the Economy projected it was determined assuming the base value was already high.

"We project that this year's export growth will slow down rather than last year, because the base has risen high," said Coordinating Minister Airlangga Hartarto in a press statement after attending a Limited Export and Investment Meeting chaired by President Joko Widodo (Jokowi), as reported by Antara.

Meanwhile, imports in 2023 are projected to increase by 14.9 percent after growing 29.4 percent in 2022.

Coordinating Minister Airlangga Hartarto explained that the slowdown could not be separated from observations of global economic developments whose growth was projected to decline.

"We see that some (economic) growth will also have improvements, especially in China in this region, and Indonesia is also still projected to be positive," said Coordinating Minister Airlangga.

This is because Indonesia is included in a number of countries with a resilience rate because dependence on exports is relatively low or contributes less than 50 percent.

Coordinating Minister Airlangga Hartarto said Indonesia was at the level of export contribution to economic growth by 45 percent, better than Japan which reached 47 percent, but below Brazil (40 percent), China (39 percent), and the United States (28 percent).

Export dependence is below 50 percent while at the same time proving that Indonesia is included in the ranks of countries with a strong domestic market.

The slowdown is also projected to occur in Indonesia's trade growth, which in 2022 will reach 3.5 percent, while for 2023 it is estimated to be only one percent.

Coordinating Minister Airlangga Hartarto said that the value of Indonesia's export trade in 2022 experienced a fairly high increase of US$268 billion with at least three main supporting commodities, namely iron and steel, fossil energy, and crude palm oil (CPO) which recorded a positive trade balance.

"Even coal can compensate for imports rather than oil, so our (trade balance) in the energy sector is positive for nearly 6.8 billion US dollars year to date, while iron and steel are 29 billion US dollars, and CPO is around 30 billion US dollars," he said.

Meanwhile, for export purposes, he continued, traditional countries still have the highest market share. China until November 2022 contributed USD 57.7 billion, followed by the United States USD 26.1 billion, India USD 21.6 billion, and Japan reached USD 21.1 billion.