Keep Exports Stable, Government Encourages Trade To Main Partner Countries

Illustration (Photo: Doc. Ministry of Finance)

The Ministry of Finance (Kemenkeu) positively welcomed export growth in March 2023 of 9.89 percent month to month (mtm) to 23.5 billion US dollars.

However, on an annual basis exports slowed down due to high-based effect exports in March 2022.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that the weakening of global economic performance followed by moderate commodity prices was also a factor in the decline in Indonesia's exports.

According to him, last month's exports were still supported by mineral fuels, precious metals, and metal ore, terak, and ash.

"China, the United States, and Japan are still the dominant export destination countries," he said in a written statement on Tuesday, April 18.

Meanwhile, imports in the same month reached 20.59 billion US dollars or grew 29.33 percent from the previous month despite slowing down compared to the same period last year (6.26 percent yoy).

Judging from the type of use, imports of capital goods were still able to grow positively, by 18.49 percent (yoy), while imports of raw/auxiliary materials and consumer goods contracted 11.17 percent (yoy) and 2.92 percent (yoy), respectively.

Imports in March were contributed by electric, iron and steel, and mechanical machinery commodities. The largest imports are dominated by Chinese, Japanese and Thai countries. Cumulatively from January to March 2023, imports reached 54.95 billion US dollars or contracted 3.28 percent (yoy)," he said.

For the development of these exports, continued Febrio, the trade balance in March 2023 recorded a surplus of 2.91 billion US dollars (cumulative January to March reached 12.27 billion US dollars) or a surplus for 35 consecutive months.

"The largest surplus contributor countries are the United States, India, and the Philippines with the main commodities of mineral fuel, animal/drug fats and oils, and iron and steel," he said.

Febrio revealed that the export performance in the first quarter of 2023 was quite good in creating a trade balance surplus higher than the same quarter the previous year.

"Although Indonesia's growth is still projected to be solid and increasing, the government will continue to encourage exports amid the slowdown in the global economy, especially to ASEAN, China, and India where demand is still growing quite high along with PMI Manufacturing which is still expanding," closed Febrio.