Increasing Export Values And Investment Is The Key For Indonesia Apart From The Trap Of Medium Income Countries

Illustration. (Photo: Doc. Antara)

JAKARTA - Economic observer from the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti said the increase in export and investment value was the key for Indonesia regardless of the trap of middle-income countries so that they became developed countries.

"Increasing export value is carried out by processing raw commodity exports into finished product exports," Esther said, quoted from Antara, Friday, December 8.

In addition to increasing exports of products that have added value and encouraging more investment to enter Indonesia, Esther said the government also needs to improve the quality of education to create quality human resources that will bring progress to make Indonesia a developed country.

According to him, Indonesia's exports are still commodity-based. Therefore, Indonesia must shift from exports of raw goods to finished products and value added.

The potential for Indonesia's export expansion for value-added products needs to be optimized through downstreaming of natural resource-based commodities supported by investment in the sector.

Strategies to realize this include ensuring that supply chains are complete from raw materials to the finished goods producing industry are available in Indonesia, including its supporting industries.

Support infrastructure for industrial estates must also be provided such as electricity, water, energy and roads, housing, and schools for the families of factory employees.

Furthermore, regulations must be consistent, uncomplicated and clear to support the continuity of all industries.

Transparency in problem solving if there are cases in the related industry and through the handling of cases quickly and clearly.

Previously, the Minister of Trade (Mendag) Zulkifli Hasan was committed to continuing to support business actors, especially exporters with policies that facilitate and eliminate export barriers to Indonesian products in entering the international market.

"The task of the Ministry of Trade (Ministry of Trade) is to support exporters. Therefore, export regulations must be made easier, lest anyone hinder Indonesia's economic growth. If there are export barriers, just report them," said the Trade Minister when opening the 2023 1st Indonesian Export Entrepreneurs Association (GPEI) National Working Meeting (Rakernas) in Jakarta, Monday (6/3).

The Trade Minister is grateful that Indonesia's trade balance has experienced a surplus of 54.53 billion US dollars throughout 2022. The value of the surplus increased by 19.11 billion US dollars or 54 percent from the previous year.

This achievement is the contribution of national export actors. Throughout 2022, exporters contributed US$292 billion, up 26 percent from the previous year and significantly supported Indonesia's trade balance surplus.