Indonesia's Trade Balance Surplus Again, Head Of BKF: Still Haunted By Challenges In 2024

Import exports (photo: Antara)

Indonesia's trade balance in March 2024 again experienced a surplus of 4.47 billion US dollars, extending Indonesia's trade balance surplus successively for 47 months since May 2020.

Head of the Fiscal Policy Agency, Ministry of Finance, Febrio Kacaribu conveyed that the value of the trade balance surplus in March 2024 was 1.64 billion US dollars higher than the trade balance surplus in February 2024 and higher against the same month in 2023 which was recorded at 2.83 billion US dollars.

Febrio explained cumulatively, Indonesia's trade balance surplus in the January to March 2024 period reached 7.31 billion US dollars.

"We certainly should be grateful for this positive achievement, amidst the uncertainty of the global economy, the continuing surplus of Indonesia's trade balance shows very good domestic economic resilience," Febrio said in his statement, Tuesday, April 23.

Meanwhile, Indonesia's export value in March 2024 was recorded at 22.43 billion US dollars, this figure decreased 4.19 percent (yoy). However, when compared to the previous month, exports in March 2024 increased 16.40 percent (mtm).

According to Febrio, this is in line with the increase in global export commodity prices throughout March, particularly for coal and precious metal commodities.

Febrio said that when viewed sectorally, the decline in exports occurred in the mining industry, while the manufacturing industry and the agricultural sector still grew quite well in line with the increase in economic activity in major partner countries such as the US and India.

Meanwhile, China as the main partner with a share of 22.44 percent of Indonesia's total exports, experienced growth that was hampered by the property crisis which also had an impact on thermoderation of trade activities between Indonesia and China.

Cumulatively, total exports in the period January to March 2024 were recorded at 62.20 billion US dollars, down 7.25 percent compared to the same period the previous year of 67.06 billion US dollars.

Meanwhile, Indonesia's imports in March 2024 were recorded at 17.96 billion US dollars, down 12.76 percent (yoy), driven by a decrease in imports of the non-oil and gas sector by 16.72 percent (yoy) amid an increase in oil and gas sector imports by 10.34 percent (yoy).

However, Febrio said that in terms of volume, imports in March 2024 still recorded growth of 4.11 percent (yoy). Meanwhile, based on the use of goods, imports of capital goods and auxiliary raw materials have decreased, while imports of consumer goods have increased in line with the increase in public consumption ahead of Eid.

Cumulatively, Indonesia's total imports from January to March 2024 reached 54.90 billion US dollars, down 0.10 percent (yoy) compared to the same period the previous year of 54.95 billion US dollars.

Febrio said that in the future economic activity throughout 2024 will still be colored by various challenges that will hinder global trade activities such as geopolitical tension and economic fragmentation which will affect the global supply chain, exchange rate pressure and the financial sector, as well as the slowdown in China's economy as Indonesia's main trading partner country.

Meanwhile, according to the World Economic Outlook (WEO) published in April 2024, the projected global growth for 2024 is 3.2 percent, still below the historical annual average (20002019) which reached 3.8 percent.

Febrio said the government would continue to monitor the impact of the global economic slowdown and geopolitical conditions including the Iran-Israeli conflict on national exports.

"The government will also prepare anticipatory steps through encouragement against the sustainability of natural resources downstream, increasing the competitiveness of national export products, and diversifying key trading partners," closed Febrio.