Indonesia's Exports Drop In January 2024, Minister Of Trade: That's The Annual Pattern

Trade Minister Zulkifli Hasan gave information after participating in the 2024 General Election. (Doc. ANTARA)

JAKARTA - In January 2024 Indonesia's exports experienced a decline, but the Minister of Trade (Mendag) said the decline in Indonesia's export value in January was a pattern that occurred at the beginning of every year.

It was recorded that in January 2024 Indonesia's exports were only USD 20.52 billion, down 8.34 percent compared to December 2023 (MoM) or down 8.06 percent from the same period last year (YoY).

"The decline in exports in January is an annual pattern that occurs at the beginning of the year. However, the export value for the January 2024 period is higher than the 2020, 2021, and 2022 periods," Zulkifli said in a statement in Jakarta, as reported by ANTARA, Saturday, February 17.

The decline in exports in January 2024 occurred in line with the decline in non-oil and gas exports by 8.54 percent and oil and gas exports by 5.50 percent (MOM). Non-oil and gas exports in January 2024 decreased in the mining sector by 23.93 percent and the manufacturing industry fell 4.13 percent (MOM).

The export contraction was influenced by the decline in export main commodity prices, such as coal and nickel as well as the decline in global demand due to the slowdown in the global economy. Meanwhile, agriculture is a sector that has increased with an increase in exports of 5.31 percent (MOM).

Some of the main products for non-oil and gas exports that experienced the deepest contraction include ore, tarak and metal ash, precious metals, jewelry/eyes, wood porridge, dregs/remains of the food industry as well as mineral fuel.

However, there are several main products for non-oil and gas exports that have increased significantly. These products include tobacco and cigarettes, aluminum and goods from them, cocoa and their processed, copper and goods from them as well as animal/drug fats and oils.

In January 2024, trading partner countries with Indonesia's deepest decline in non-oil and gas exports, including Switzerland down 53.74 percent, Canada down 48.05 percent, Bangladesh down 39.13 percent, Russia down 24.68 percent, and Turkey down 19.73 percent (MoM).

Amid the weakening of non-oil and gas exports, several export destinations have shown significant growth. These areas include South Europe rising 90.77 percent, East Africa 69.77 percent, Caribbean 56.13 percent, Central Africa 37.49 percent, and North Africa 27.68 percent.

"Although RRT, the United States, and India are still the main markets for Indonesia's non-oil and gas exports of US$8.35 billion with a contribution of 43.64 percent to national non-oil and gas exports, however, the non-traditional export market has the potential to be targeted by Indonesia to increase exports," concluded Zulkifli.