Processing Industry Exports Increase by US$11.99 Billion in January 2021

Indonesia’s processing industry recorded an 11.72% increase in export value in January 2021 according to Statistics Indonesia (BPS), compared to the same period in 2020 (year-on-year). Indonesia’s processing industry contributes 78.36% of the country’s exports. The growth is mainly driven by increased exports of palm oil, organic agricultural chemicals, steel, televisions and television accessories. 

According to BPS head Suhariyanto, the processing industry’s export value in January 2021 reached US$11.99 billion. “This achievement gives us hope that our exports will continue to grow and assist in our economic recovery in the future,” Suhariyanto said on Monday (15/2). However, despite the year-on-year increase, Suhariyanto added that Indonesia’s export value saw a month-on-month (MOM) decrease in the same period. He explained that when compared with December 2020, the processing industry’s exports decreased by 7.1% MOM, but also mentioned that such declines have become routine for this period. 

“If we look at the cycles of previous years, you will see that export levels will usually decline between December and January. This is due to the productivity shifts and adjustment processes happening between these months in preparation for the new year,” he said. 

According to BPS data, Indonesia recorded a trade balance surplus of US$1.96 billion in January 2021.This figure is driven by the greater number of exports compared to imports in this period. However, Industry Ministry Agus Gumiwang noted that the trade balance surplus mainly suggests an established trend that has been observed throughout the years. 

“Usually there would be a reduction of imports in January because industries are adjusting for the new year. But on the other hand, I see that the processing industry’s exports have been performing very well this period, managing a double digit increase of 11.72%. It’s heartening to see a good number early in the year, and it bodes well for the near future,” Agus said as quoted by Bisnis.com. 

Indonesia’s non-oil and gas export value grew due to increased exports to countries such as Thailand, Myanmar, Ukraine, Egypt and Spain, while the country saw a decline in exports to India, China, the United States, Malaysia and Taiwan. 

China remains Indonesia’s largest export destination, with a value of US$3.05 billion, or 21.16% of all exports shipped. The main commodities sent to China include mineral fuel, steel and vegetable oil. The United States is Indonesia’s second largest export destination, with a value of US$1.68 billion or 11.63%, while Japan is the third largest with a value of US$1.25 billion or 8.66%. 

Exports to various Asian countries total to around 21.17% while the European Union makes up 8.1%.