Trade Balance Still Surplus, Ministry Of Finance Expects Macro Macro ECONomi Stability To Be Maintained

Rupiah illustration (Photo: dock. Antara)

JAKARTA Indonesia's trade balance in October 2023 again recorded a surplus of US$3.48 billion. This is a trade balance surplus that has lasted 42 consecutive months.

Cumulatively, the trade balance surplus during the January to October 2023 period reached 31.22 billion US dollars.

Head of the Fiscal Policy Agency, Ministry of Finance, Febrio Kacaribu said that this achievement is expected to support Indonesia's current balance position, which in turn contributes to strengthening the external sector and maintaining macroeconomic stability.

"Despite the decline, Indonesia's trade balance, which is still in surplus in October, reflects Indonesia's resilience in the midst of an escalative global risk," he explained in his official statement Friday, November 17.

Febrio said this increased risk would remain vigilant by continuing to monitor and prepare various policy bearing options to reduce global turmoil and maintain economic stability and performance.

Meanwhile, Indonesia's export value in October 2023 was recorded at 22.15 billion US dollars, or a decrease of 10.43 percent (yoy), mainly due to high base effect last year and the decline in commodity prices this year.

The decline occurred in all sectors, namely the manufacturing sector 5.03 percent (yoy), 28.57 percent mining, (yoy), and 21.58 percent agriculture (yoy).

Although in terms of value it has decreased, export volume has increased by 7.16 percent (yoy), as an indication that demand from partner countries is still quite strong. Cumulatively, Indonesia's exports during the period January to October 2023 reached 214.41 billion US dollars.

Febrio said that the slowing trade performance was actually not only experienced by Indonesia, but also in Indonesia's trading partner countries as a consequence of weakening the global economy.

Even though the economy of the United States (US) is in a strong trend, US imports from global as a whole are still contracting. This is mainly because the trend of strengthening the US economy is more supported by the domestic services sector. The value of Indonesia's exports to the US contracted by 0.51 percent (mtm).

Likewise, the slowdown in economic activity in the ASEAN region, which causes exports to Singapore and Malaysia to contract by 4.73 percent and 2.28 percent (mtm), respectively. However, it is different from exports to China, which still grew by 11.96 percent (mtm) in the midst of the country's economic slowdown.

Meanwhile, Indonesia's import value in October 2023 recorded a value of 18.67 billion US dollars, down 2.42 percent (yoy). The main reason for the decline in import performance was the decline in imports of raw/auxiliary materials by 6.08 percent (yoy).

Meanwhile, imports of consumer goods and capital goods grew by 3.83 percent and 11.08 percent (yoy), respectively. Cumulatively, Indonesia's imports from January to October 2023 reached 183.19 billion US dollars.

"The government will continue to monitor the impact of the global slowdown on national exports, as well as prepare anticipatory steps through boosts to the sustainability of natural resources downstream, increasing the competitiveness of national export products, and diversifying key trading partners," closed Febrio.