Ministry Of Finance: Trade Balance Surplus Is Evidence Of Indonesia's Economic Recovery Continues

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA – The Ministry of Finance (Ministry of Finance) stated that Indonesia's trade balance surplus of US$3.87 billion last January indicated a number of positive things amid increasing global pressure.

Head of the Ministry of Finance's Fiscal Policy Agency (BKF) Febrio Kacaribu said the positive incision was supported by export growth of 16.3 percent year on year (yoy) to US$22.3 billion.

According to him, the increase in exports was supported by an increase in shipments of oil and gas and non-oil and gas commodities, which still jumped 65 percent and 13.9 percent respectively.

"Several of the main commodities that support positive export performance include precious metals and jewelry/gems as well as rubber and rubber goods," he said when delivering a press statement on Thursday, February 16.

Meanwhile, on the import side, it recorded growth of 1.2 percent to US$18.4 billion with the dominance of consumer goods, capital goods, and auxiliary raw materials of 1 percent, 5.6 percent, and 0.4 percent.

"Consistently positive growth for all types of imports across all types shows that production activity in the country continues to be expansive which is in line with the manufacturing PMI indicator which increased in January," he said.

Meanwhile, the largest contributors to the surplus came from the United States, the Philippines, and India with the main commodities being mineral fuels, palm products, and machinery.

"The trade balance surplus at the beginning of this year is a good start in strengthening the resilience of the national economy in facing future global challenges," said Febrio.

For information, Indonesia managed to achieve a growth of 5.31 percent throughout 2022. The book is considered quite good when compared to the projections of the IMF and the World Bank for the global economy which is only around 3 percent.

The government itself targets the economy to still grow 4.5-5.3 percent for the 2023 period. The high range of figures being targeted reflects a situation of uncertainty triggered by external factors.