Sunday, 17 October, 2021

Indonesia’s trade surplus hits record high

JAKARTA: Indonesia posted a trade surplus of 4.74 billion USD in August 2021, breaking the record of 4.64 billion USD in December 2006, the Central Statistics Office (BPS) has said.

Speaking at an online press conference on September 15, BPS head Margo Yuwono said Indonesia’s total export turnover reached 21.42 billion USD, while its imports only hit 16.68 billion USD. According to BPS, the export value alone has exceeded far from the record of 18.65 billion USD in August 2011, report agencies.

Margo said the export turnover soared thanks to the sharp fluctuations in prices of some commodities in the international market, including the main export markets of Indonesia, as well as increased import demand.

According to BPS, Indonesia’s exports increased in both volume and price. The highest increase in exports included palm oil and coal, while prices of both strategic commodities also increased sharply in the international market.

Indonesia’s total import turnover also increased by 10.35 percent from 15.11 billion USD in July. Margo attributed this to the government’s easing of the restriction on community activities (PPKM).

The Coordinating Minister of Economic Affairs of Indonesia Airlangga Hartarto on September 16 forecast that the country’s economy in 2021 will grow by 3, 7 - 4.5 percent and 5.2 percent in 2022.

The minister said all economic sectors have been growing positively and showing improved operational efficiency along with the improvement of domestic demand and trading partner countries. Some sectors showed positive growth such as manufacturing industry and trade, which are major contributors to the national economy.

Economic growth in the second quarter of 2021 was at 7.07 percent, but with the implementation of the policy of Restricting Community Activities (PPKM) in the third quarter, economic growth has witnessed a slight decrease. However, the growth for the whole year 2021 is forecast to reach from 3.7 - 4.5 percent.

According to Airlangga, in the coming time, the Government will continue to strengthen pandemic control from the central to local levels. In particular, the government will focus on speeding up vaccination, strengthening medical processes, increasing the number of tests and contact tracing, as well as tightening movement control through the enforcement of PPKM policy.

In September, the government set a daily vaccination target of 2-2.3 million people to achieve the goal of vaccinating 208 million people by the end of 2021.