Indonesia’s Trade Balance Records Highest Surplus in 15 Years

Coordinating Minister for Economic Affairs Airlangga Hartarto. (Photo by: PR of Cabinet Secretariat/Rahmat)

Indonesia’s trade balance for 2021 recorded a US$35.34 billion surplus, the highest in the last 15 years.

Indonesia has also managed to maintain positive trends in its trade balance for 20 consecutive months by recording a surplus of US$1.02 billion in December 2021.

“Amid global uncertainties, Indonesia has managed to record an impressive performance in its trade balance. The performance will increase our resilience in external sector and increase our strength to face other upcoming challenges,” Coordinating Minister for Economic Affairs Airlangga Hartarto said as quoted in the Ministry’s website on Tuesday (01/18).

The surplus is attributed by export value amounting US$231.54 billion or an increase of 41.88 percent (year-on-year/yoy). Derivative products from crude palm oil (CPO) are largely contributed to the Indonesia’s export value in which US$32,83 billion was generated from the export of animal or vegetable oils/fats and their cleavage products. The results increased by 58.48 percent (yoy).

In addition, export of nickel and articles thereof also increased by 58.89 percent (US$1.28 billion), export of ore, slag, and ash increased by 96.32 percent (US$6.35 billion), export of iron and steel increased by 92.88 percent (US$20.95 billion), and exports from non-oil and gas sector increased by 35.11 percent (yoy) to US$177.11 billion.

Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) posted 53.5 in December 2021, representing a fourth straight month of improving business conditions. It also showed a better result compared to that of Malaysia (52.8), Vietnam (52.5), the Philippines (51.8), Thailand (49.5), and Myanmar (49.0).

Improving trend of COVID-19 development and significant decline in COVID-19 cases during the past few months has relaxed the Government’s regulations on public activity restrictions. As a consequence, it improved the economy, boosted aggregate demand, and stimulated manufacturing industry. Nevertheless, the Government will remain vigilant to anticipate the increasing trend in omicron cases and maintain strict health protocols to keep the cases under control and ensure the economic recovery.

In line with impressive performance in Indonesia’s export values, the country’s imports value in 2021 also grew 38.59 percent (yoy) or increased to US$196.20 billion. The Government will continue to maintain this position by optimizing various policies that will boost value-added exports. (Coordinating Ministry for Economic Affairs PR/UN) (RAS/LW)