Faisal Basri Named The Top 10 Indonesian Export Destinations To Neighboring Countries: China Is The Biggest

Illustration. (Photo: Pixabay)

JAKARTA - Institute for Development of Economics and Finance (INDEF) senior economist, Faisal Basri, said that there was a change in the trend of international trade. The change in question is a trade that returns to basic. This means that trade is carried out between neighboring countries.

Faisal gave an example, America has the largest export portion to Canada, and the second position is Mexico. Likewise with Canada, where the number one export to America.

"Something is interesting (trade) going back to basics. In international trade now the most intense is fellow neighbors, trade between neighbors", he said in a webinar, Friday, October 8.

As for Indonesia, said Faisal, most of the exports of goods were made to China. Then, America, Japan, Singapore, India, and Malaysia. Based on the data he has, Faisal said that 9 of the top 10 export destination countries for Indonesia are Asian countries.

"It turns out that from the top ten, 9 are in Asia. So we strengthen Asia, we strengthen ASEAN. We trade with each other with ASEAN. This is relatively small, our intra-ASEAN trade is small. Therefore, don't look too far for friends, close friends are left behind", he said.

Faisal emphasized that the potential for international trade with ASEAN countries is very large. Therefore, Asian countries such as Japan and India should not be left behind by Indonesia.

"The potential is extraordinary, ASEAN and also, of course, other Asian countries such as Japan we cannot leave, India is a big power now in this world. Then, if that was the case, now we see that the trade per region is more than 2/3, even in 2020 our exports to Asia are 70", he said.

However, said Faisal, for Oceania, Australia, and New Zealand are still not familiar with Indonesia. Therefore, he hopes that with the trade agreement with Australia, exports to the Kangaroo country can increase.

Faisal said that ASEAN is very important for Indonesia in the future and Indonesia is waiting for its leadership to build ASEAN into an economic unit without having to wait too long in multilateral forums.

Moreover, said Faisal, Indonesia has a balanced composition of exports and imports with Asia. So that it can be an equal partner with Asia.

"Therefore, I urge you again, hopefully, Mr. Jokowi will put in place, leading ASEAN not to lead in a formal sense, but a source of inspiration, a source of unity and a source of new ideas", he explained.

In addition, according to Faisal, geography is becoming increasingly important in international trade. According to him, the condition for being able to trade with neighbors is that the economy must be integrated first.

"Incidentally, Indonesia has become a strategic trade route in the world. Here, we see the Malacca Strait is extraordinary. Then how unique Indonesia is, not even geographically similar to Indonesia", he said.

"Indonesia has more than 17,000 islands, two-thirds of which are oceans, the coastline is the second-longest in the world, we use the term homeland. It is the sea that unites us. Realize that it is the sea that unites our islands so that it can integrate the domestic economy", he explained.