High surplus indicates economy recovering well: Trade Minister

Trade Minister Muhammad Lutfi has said that the strengthening of Indonesia’s export and import performance indicates that the nation’s economy is recovering well.

“During January to August 2021, Indonesia’s exports and imports recorded significant growth. The strengthening of the trade performance shows that Indonesia’s economy has recovered well,” he said at a virtual press conference here on Friday.

The export growth during the period reached 37.37 percent year on year, he noted. In addition, imports grew by 33.36 percent year on year, he said.

Furthermore, Indonesia’s trade balance surplus in August 2021 reached $4.74 billion, the highest in history, overtaking the previous record of $4.64 billion on December 2006, the minister said.

Moreover, the surplus trend has continued for 16 consecutive months since May 2020, he added.

“The surplus was gained from the monthly export value of $21.42 billion — the highest record to date,” he said.

Furthermore, the increase in exports of manufactured products, the rise in commodity prices, and the increasing demand from trading partner countries had also contributed to the surplus, Lutfi explained.

“In the manufacturing sector, the highest month-on-month export growth was reached by paper products by 19.61 percent, chemical products by 17.10 percent, and motor vehicles by 16.16 percent,” he added.

In addition, exports of main commodities comprising crude palm oil, tin products, and metal ores increased by 61.60 percent, 56.29 percent, and 40.99 percent month-on-month, respectively, he said.

The surplus was also in line with the trend of the rise in commodity prices – for instance, the crude palm oil price increased by 55.8 percent, while the tin price soared by 72.7 percent, he informed.

Meanwhile, regarding demand, the minister said that it is important to consider the economic recovery in Indonesia’s main export destination countries, such as China.

Furthermore, the minister informed that China’s imports from Indonesia increased by 33.1 percent, India’s imports grew by 51.5 percent, while Vietnam’s imports rose by 21 percent year-on-year in August 2021.

 

Source: Antara News

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