According to the report of the Ministry of Finance of the Republic of Indonesia, despite the worldwide economic slowdown, the country has successfully improved its trade balance. However, the excess of $36.93 billion in 2023 continues to be lower than the previous 12 months.
In 2022, the worth of Indonesia’s exports reached USD 291.90 billion, while in 2023 it amounted to USD 258.82 billion, barely lower than in 2022. Similarly, the worth of imports showed a nominal decline from 2023 in comparison with 2022. The value Indonesia’s imports in 2023 was USD 221.89. billion dollars, which suggests a decrease of roughly 6.55% (y/y).
Meanwhile, in volume terms, the worth of Indonesia’s exports in 2023 increased by 8.55% (y/y), and the worth of Indonesia’s imports increased by 8.04% (y/y) in comparison with 2022.
On the opposite hand, in keeping with the Central Statistics Agency, Indonesia recorded a trade balance surplus of $2.3 billion in December 2023, a rise of $0.9 billion monthly. This figure indicates that Indonesia has recorded a trade surplus for 44 consecutive months.
According to the Central Statistics Agency, Indonesia alone had trading partners with 246 countries in 2023. Of these countries, 177 contributed to a trade surplus and the remainder had a deficit.
Overall, the countries contributing probably the most to Indonesia’s trade surplus include India with $14.51 billion (exports: $20.28 billion, imports: $5.77 billion), followed by the United States with a share of $14.01 billion (exports: USD 23.24 billion, imports: USD 9.22 billion). The Philippines was in third place with USD 9.60 billion (exports: USD 11.04 billion, imports: USD 1.44 billion). The other two major countries in the highest five are Malaysia and Bangladesh with $4.4 billion and $3.12 billion respectively.
In terms of export value, Indonesia continues to deal with a number of countries, including: China (25.66%), the United States (9.57%) and India (8.35%). On the import side, Indonesia’s imports are dominated by China (33.42%) and Japan (8.84%).
The slowdown in Indonesia’s export value is because of weakening prices of key raw materials similar to crude oil and palm oil, in addition to relations with some trading partners. Meanwhile, the slowdown in Indonesia’s import sector is because of electrical machinery/equipment and parts.
Indonesia’s business prospects are expected to proceed to be impacted by global economic uncertainty this 12 months. This situation is visible within the expected slowdown in global economic growth forecast by various international institutions, which shall be accompanied by a moderate decline in commodity prices.
