Airlangga Don't Be Happy, Indonesia's Trade Surplus Is Thanks To Rising Commodity Prices Purchased By China

JAKARTA - Indonesia's export and import performance in June 2021 has increased, both monthly (month to month/mtm) and yearly (year on year/yoy). Coordinating Minister for Economic Affairs Airlangga Hartarto said the increase in exports and imports showed that economic activity in Indonesia was increasingly showing a recovery.

Based on BPS data published Thursday, July 15, Indonesia's export value was recorded at 18.55 billion US dollars and imports 17.23 billion US dollars in June 2021. The export value recorded the highest record since August 2011, while the import value was the highest since October 2018. .

The number of exports increased by 54.46 percent on an annual basis (yoy), from USD 12.01 billion in June 2020 to USD 18.55 billion in June 2021. Meanwhile, imports rose 60.12 percent from USD 10.76 billion in June 2020 to 17.23 billion US dollars in June 2021.

However, Indonesia's trade surplus, which lasted for 14 consecutive months, is not yet encouraging news. The reason is that the country's trade surplus was "helped" by several factors.

"This is firstly because commodity prices in the international market are rising, especially coal, nickel and other mining goods. Countries that are restarting the economy faster, such as China, are buying raw materials from Indonesia in larger volumes," said the Director of the Center for Economic and Law Studies ( Celios) Bhima Yudhistira, to VOI, Friday 16 July.

Furthermore, said Bhima, plantation exports were also positively driven by an increase in global demand, which grew 14 percent for the January-June period.

"The price, according to him, is not the power of the government, so it has nothing to do with government policy," he said.

Second, continued Bhima, is the seasonal factor of Lebaran, where imports of consumer goods are usually recorded to increase. The actual trade surplus also decreased in June to 1.32 billion US dollars.

"The government should be aware of the declining surplus, one of which is triggered by the widening oil and gas deficit compared to last year. Rising oil prices also endanger the economy because Indonesia is a net importer of oil," explained Bhima.