Indonesia's Export Growth in 2023, Policy Driven and Global Cooperation Strengthened

The latest data released by Indonesia's Central Bureau of Statistics (BPS) showed that the country's exports in 2023 achieved a year-on-year growth of 8.55% compared to 2022, and the value of exports in December was as high as US$22.41 billion, marking the 44th consecutive month since May 2020 that Indonesia has maintained a trade surplus. The positive trend in exports in 2023 reflects the strong resilience of Indonesia's economic development, according to the head of Indonesia's Fiscal Policy Agency, Fibilio. In order to expand export trade, Indonesia has been promoting relevant policies and measures in recent years and has established specialized institutions such as the Trade Promotion Center.2023 In September 2023, a special national working group on export promotion was established, and relevant ministries and agencies have also stepped up their efforts to collect and analyze market information and data, with the aim of providing policy guidance for exporters to enhance their competitiveness. In December last year, the Indonesian Ministry of Foreign Affairs also organized a forum to discuss business opportunities in the Asia-Pacific and Africa regions, and plans to publish a report in 2024 on region-specific and economic data.

According to official data, MSME exporters in Indonesia account for 77.28% of the total number of exporters, but their export value only accounts for 4.1% of the total export value, therefore, the Indonesian government supports MSMEs in various aspects such as policies, funds and information, and encourages and promotes the business environment for these enterprises to achieve fair competition and common development by increasing financing, providing training, simplifying market access qualifications and procedures, organizing international trade fairs, and developing e-commerce and e-payment. By increasing financing, providing training, simplifying market access qualifications and procedures, organizing international trade fairs, developing e-commerce and e-payment, etc., it improves the business environment for these enterprises and encourages and facilitates the export of products from MSMEs in order to achieve fair competition and common development. Considering that most of the export products are primary raw materials, the Indonesian government has paid more attention in recent years to enhancing the added value of export products and encouraging investment in processing industries. Since 2014, Indonesia has adjusted its mining policy to reduce the export of some ore raw materials and encourage the construction of smelters to produce stainless steel and other processed products, with the aim of extending the domestic industrial chain and enhancing the added value of products. For example, the added value of nickel ore processed into ferronickel can increase several times, which is expected to increase more foreign exchange earnings.

Indonesia's Ministry of Trade, the National Agency for Export Development, said it will further develop the downstream industry of raw materials in the future and continue to put in place measures to increase the added value of export products, aiming to further expand export trade in 2024. China, Indonesia's most important trading partner, export target and source of imports, saw bilateral trade reach $127.12 billion in 2023. Indonesia has set a target to raise its exports to China to between $65 billion and $70 billion in 2024 and has formulated a number of cooperation programs. Indonesia will deepen trade cooperation with China and promote Indonesian products in the Chinese market by organizing expositions and other activities, emphasized Didi Sumedi, head of the National Export Development Agency of the Ministry of Trade. In order to diversify the trade market, the Ministry of Trade of Indonesia is constantly striving to open up new export markets, seeking foreign trade cooperation with more countries and regions such as Africa, the Middle East and Latin America, and exploring the signing of FTAs, preferential trade agreements, and comprehensive economic partnership agreements, etc., in order to expand the outlets for domestic products.

News source:People's Daily (PRC newspaper)