Tuesday, 28 September, 2021

Indonesia’s trade surplus supported by robust economic recovery

Indonesia’s trade surplus supported by robust economic recovery

Popular News

JAKARTA: The trade balance surplus posted in July 2021 was backed by fundamental strengthening in economic recovery, according to Coordinating Minister for the Economy Airlangga Hartarto.

“The increasing growth in exports and imports indicates fundamental strengthening of economic recovery after global and domestic economic demand got better,” Minister Hartarto noted in a statement here on Thursday, report agencies.

For continued improvement in the performance of exports and imports, Hartarto remarked that Indonesia will continue to optimize every international cooperation agreement that has been implemented.

One of the bilateral agreements that made a significant contribution to business actors is the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which has been in force since July 5, 2020. The agreement includes comprehensive commitments in the goods and services trade sector as well as investment.

“With the IA-CEPA, Australia has eliminated 100 percent of import duties on all commodities originating from Indonesia. Business actors are expected to be able to fully capitalize on these opportunities to spur their export performance to Australia,” according to Hartarto.

Until the first semester of 2021, Indonesia’s exports to Australia has reached US$1.61 billion, or grew 41.87 percent, as compared to the export gain of US$1.14 billion during the corresponding period of last year. The growth is quite significant and can still be increased on account of the huge potential of both nations.

“Implementation of the IA-CEPA is also expected to encourage the achievement of economic powerhouses of both countries, so that exports can be increased through market expansion to various countries. For Indonesia, the synergy among all stakeholders is the key to success in deriving benefits from the cooperation agreement scheme,” Hartarto expounded.

The performance of exports and imports that strengthened by 29.32 percent and 44.44 percent respectively from the corresponding period last year was in line with Indonesia’s trade balance surplus of US$2.59 billion in July 2021.

This gain became Indonesia’s trade balance surplus for 15 consecutive months since May 2020. This surplus was especially recorded by Indonesia with several major trading partners, such as the United States, at US$1.27 billion; US$0.53 billion with the Philippines; and as much as US$0.40 billion with Malaysia. Meanwhile, Indonesia still recorded a trade balance deficit of US$0.84 billion with China, US$0.45 billion with Australia, and US$0.27 billion with Thailand.

Hartarto believes that Indonesia’s strong international trade performance will support resilience of its external sector as well as drive future economic growth.