Benefiting from a Strong Domestic Market, the Government Remains Beware of

Slowing Export Performance

Image not found or type unknown

COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/5/SET.M.EKON.3/01/2023

Benefiting from a Strong Domestic Market, the Government Remains Beware of Slowing Export
Performance

Jakarta, January 12th, 2023

Even though global economic conditions are predicted to be plagued by uncertainty this year, several
countries are projected to have positive economic growth. Relatively low dependence on the export market,
or less than 50%, makes countries such as Indonesia, Japan, Brazil, China, and the United States have high
resilience through the support of a robust domestic market.

High commodity prices on world markets in recent years have boosted the value of Indonesia's exports.
However, since the middle of 2022, it has slowed down and then shows a decline at the end of 2022,
including Indonesia's three primary export commodities, metals, CPO, and coal. In addition, several other
major global trading commodities such as natural gas, brent oil, and wheat also showed a downward trend.

"If we look at several countries with expansive manufacturing, namely Japan, France, Mexico, Indonesia,
Brazil, India, and Saudi Arabia, this shows that their sector is still strong. However, in several large
countries, such as Italy, Germany, and Korea, their PMI is below 50%. So, this shows that the world is still
(in) uncertainty, and we also see economic growth and trade growth, which last year expanded by 3.5%, so
this year it is estimated that it will only be 1%," said Coordinating Minister for Economic Affairs Airlangga
Hartarto when delivering a press statement after Internal Meeting related to the 2022 Export and Investment
Evaluation at the Jakarta Presidential Palace, Wednesday (11/01).

Until the end of 2022, Indonesia's export value reached USD 299.57 billion or grew 29.40% (yoy).
Meanwhile, the import side also grew nearly equal, namely 25.37% (yoy) or USD 245.98 billion.
Furthermore, export performance in Indonesia's international trade in 2023 is projected to grow by 12.8%
(yoy), and imports will grow even higher by 14.9% (yoy).

On this occasion, Coordinating Minister Airlangga also alluded to President Joko Widodo's directives to
improve Export Proceeds policies. Besides the types of required sectors, a review will also be carried out on
the amount of foreign exchange and the storage period of Export Proceeds in the country.

"Thus we will make revisions, so we hope that the increase in exports and the trade balance surplus will be
in line with the increase in foreign exchange reserves," said Coordinating Minister Airlangga.

In a joint press statement with the Minister of Investment/Head of Investment Coordinating Board (BKPM)
Bahlil Lahadalia, Coordinating Minister Airlangga also conveyed the President's direction regarding
investment targeted at IDR 1,400 trillion for 2023.

"Several regulations need to be refined, namely improvements to Government Regulations, improvements to

the Risk-Based Approach Online Single Submission (RBA-OSS), and Investment Priority List," concluded
Coordinating Minister Airlangga. (rep/dft/map/fsr)

***

Head of Communications, Information Services, and Meetings Bureau

Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

Website: www.ekon.go.id
Twitter, Instagram, Facebook, Tiktok, & Youtube: @PerekonomianRI
Email: humas@ekon.go.id
LinkedIn: Coordinating Ministry for Economic Affairs of the Republic of Indonesia