Indonesia's Exports Positively Defeat China, Coordinating Minister Airlangga Reveals Thanks To Downstreaming

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA - Indonesia's economic growth is able to show resilience amid various global challenges as reflected in Indonesia's inflationary level which continues to show good performance maintained in the target range of 3.0 percent plus minus 1 percent, which is 2.61 percent (yoy) in December 2023.

One of these is supported by the Large Trade and Retail sector which is able to grow by 5.08 percent (yoy) with a contribution of 12.96 percent to GDP.

Meanwhile, in terms of demand, the Household Consumption sector grew 5.06 percent (yoy) with a contribution to GDP of 52.62 percent.

Consumer confidence in economic conditions also continues to increase, as can be seen from the Consumer Confidence Index (IKK) in December 2023 of 123.8 and higher than in November which was recorded at 123.6.

"Tradiation performance is also good in terms of positive exports. We are even positive with China. Well, this is certainly the result of downstreaming policies. And we do not imagine that we are at a point in 2023 that we can be positive with China," said Coordinating Minister for the Economy Airlangga Hartarto in his official statement, quoted Wednesday, January 17, 2024.

In fact, Airlangga said, Indonesia is also in a positive relationship with almost all other trading partners such as Europe, with India and America.

So that this is the key to strength in the Indonesian economy.

Airlangga said the retail sector is an indicator to see how the macroeconomics run, one of which is by paying attention to retail sales performance.

Bank Indonesia noted that the Real Sales Index in December 2023 remained strong at 217.9 or grew 0.1 percent (yoy).

On a monthly basis, retail sales are also expected to increase in December by 4.8 percent (mtm) in line with the increase in demand due to Christmas and New Year celebrations.

Launching data from Euromonitor, the number of retailers in Indonesia in 2022 will reach 3.98 million units, covering traditional grocery stores to hypermarkets.

The report also noted that retail sales in Indonesia reached 100.4 billion US dollars or equivalent to Rp. 1,526.2 trillion, an increase of 8.6 percent compared to the previous year.

"This shows the role of retail to support the economy and fulfill consumer needs," said Airlangga.

Airlangga said, to keep the retail business growing, the current government has made improvements to regulations related to easy imports and ease of doing business, especially related to business licensing, namely Government Regulation Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.

In addition, Airlangga said the Government had considered arrangements that accommodate global corporate business patterns that implement global supply chain and this would be one of the conveniences.

"In developing the retail sector, we must study the policies of other countries, whether it is our neighbor Singapore and Thailand, it becomes a benchmark on how shopping tourism can be used as a driver or as a lever to bring in foreign tourists," said Airlangga.

Airlangga said that the private sector as the backbone of the national economy must play an active role in investing and innovating in creating new concepts in meeting consumer needs and lifestyles today.

"And of course this retail is downstream of national and retail products. This is one of the inputs for economic growth. Well, this is what we have to prepare," concluded Airlangga.