Indonesian Exports Reach US$144 Billion, Industrial Sector Contributes 77%

JAKARTA – According to data by Statistics Indonesia (BPS), Indonesia's processing industries recorded an export value of US$143.76 billion throughout January to October 2021, rising by 35.53% compared to the same period in 2020, where it recorded a figure of US$106.08 billion.
 

The industrial sector had contributed the largest amount to the country's total national export value, with 77.16% in the past eight months, reaching US$186.32 billion.

The processing industry's export value in October 2021 reached US$ 16.07 billion, rising by 3.61% from September 2021, and rose by 36.50% compared to October 2020. Indonesia's main export markets for non-energy exports include China, the United States, Japan and India. In October 2021, Indonesia's market share in the ASEAN region was at US$3.55 billion while in the European Union it was US$1.54 billion.

"The industrial manufacturing sector is still consistently providing the largest contribution to the country's total export value. This shows that the industrial sector is very resilient in facing global challenges, especially against the Covid-19 pandemic," Industry Minister (Menperin) Agus Gumiwang Kartasasmita said on Monday (15/11).

Minister Agus explained that the manufacturing industry sector holds an important role in the formation and structure of the national trade balance. Between January and October 2021, the trade balance of the manufacturing sector showed a surplus of US$26.33 billion.

"Seeing this performance, I think it cannot be separated from the participation of all parties who work hand in hand in handling the Covid-19 pandemic. In order for international confidence in Indonesia to slightly improve, I received reports that orders from abroad are flying faster out of Indonesia," the minister said.

Several industrial sectors experienced an increase in exports during the pandemic, including the automotive industry, whose CBU exports increased by 30%, and the household electronics industry, which managed to double its exports.

The minister also added that his ministry is determined to create and foster a national industrial sector that is independent, sovereign, advanced and globally competitive. This ambition is in line with the national targets outlined in the Indonesia 4.0 roadmap, which outlines Indonesia's ambitions to become one of the Top 10 economies in the world by 2030. The Kemenperin also continues to encourage the optimization of several programs, including the 35% import substitution program in 2022, the Increased Use of Domestic Products and Components initiative (P3DN) and the down streaming of natural resources.

Furthermore, efforts to create an advanced and competitive industry will be carried out through four specific programs. The first is through the Making Indonesia 4.0 program. Second is going forward with the green and blue industry initiatives. Third is the production and purchasing power stimulus programs and the fourth is the implementation of non-tariff barriers.

"And then, policies and/or programs that lead to efforts to create a just and inclusive industry include the implementation of certain natural gas prices, building industrial estates outside of Java and developing the halal industry further," concluded the Minister.