Indonesia Reports Upward Trend Economic Recovery
By : Nata Kesuma | Thursday, June 17 2021 - 17:55 IWST
President Jokowi inaugurates Indonesia’s Export Release to the Global Market online at Bogor Presidential Palace, West Java (04/12/2020). (Photo by: Press Media and Information Bureau of Presidential Secretariat/Lukman)
INDUSTRY.co.id - The Government has announced that Indonesia economic recovery will continue in line with the positive trend of exports and imports. For the record, Indonesia’s exports in May 2021 reached USD 16.6 billion, significantly increasing by 58.76 percent (year-on-year/yoy).
In the meantime, imports in May 2021 stood at USD 14.23 billion, significantly rising by 68.68 percent (year-on-year/yoy).
“Trade balance remains at a surplus as of this month amounting USD 2.36 billion. It means that it has been in a surplus for 13 months since May 2020,” Coordinating Minister for Economic Affairs Airlangga Hartarto said in his statement, Tuesday (15/06/2021).
Non-oil and gas commodity is the main contributors to the enhancement of export performance this month with 58.30 percent (year-on-year/yoy) growth. The highest contributor to this sector is animal and vegetable fats and oils (HS 15) amounting 15.9 percent.
There is also an upward trend in oil and gas exports with 66.99 percent (year-on-year/yoy) growth. The highest contributor to this sector is gas commodity amounting 53.8 percent. Furthermore, Indonesia’s exports in May 2021 with 58.76 percent (year-on-year/yoy) growth performed better than other Asian countries did namely South Korea (45.6 percent), Taiwan (38.65 percent), Vietnam (36.6 percent), and China (27.6 percent).
This increase in Indonesia’s exports went hand in hand with the increase in prices of some Indonesia’s leading commodities, namely crude palm oil (101.74 percent) and coal (103.9 percent). Other factors are US and China, as Indonesia’s trade partners, where economic recovery showed positive trends in Quartal I of 2021 and US and China manufacture activities showed expansive activities that triggered Indonesia’s export in the same month.
Not only global demand that has recovered, domestic demand has also increased to boost production to the higher level. It is recorded that Purchasing Managers’ Index (PMI) reached 55.3 in May 2021 which means a highest record in the last 10 years since the survey began in April 2011.
In addition, the number of workers employed to meet the operational capacity needs has increased. It also boosts the improvement of worker absorption that has previously decreased amid the COVID-19 pandemic. In the meantime, Indonesia’s imports of raw and auxiliary materials, which is the main contributor of imports, increased 79.11 percent (year-on-year/yoy).
At the same time, imports of capital goods also posted a positive growth by 35.28 percent (year-on-year/yoy).
“All these positive growths will support Indonesia in addressing global and domestic challenges so that external sector resilience can be properly maintained this year,” Airlangga said.