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Indonesia eyes new markets for coal, palm oil as global recession looms
Coal and crude palm oil are the country’s key export commodities, accounting for 18.77 percent and 12.14 percent of total exports from January to November last year, according to Statistics Indonesia (BPS).
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Giant arm: Workers oversee a crane moving a container to a docking cargo ship at Tanjung Perak Port in Surabaya, East Java. (JP/Wahyoe Boediwardhana)
T
he government is seeking to diversify its export destinations for coal and palm oil this year amid fears of recession in advanced economies, but analysts question whether new markets could make up for diminishing demand.
Trade Minister Zulkifli Hasan said Indonesia would look to expand its exports in Africa, South Asia and the Middle East.
Coal and crude palm oil (CPO) are the country’s key export commodities, accounting for 18.77 percent and 12.14 percent of total exports from January to November of last year, according to Statistics Indonesia (BPS).
Global economic recovery and a war between Russia and Ukraine resulted in strong demands for the key commodities, bringing the country trade surplus and strong economic growth throughout the year.
“Trade deals are the toll roads to maintain export growth in times of hardship,” Trade Minister Zulkifli Hasan said in a 2023 outlook keynote speech recently.
Read also: Indonesia to divert exports to new markets amid languid global demand
The government is expecting a decrease in exports as the world’s biggest economies, the United States, China and Europe are projected to head into a slowdown this year. International Monetary Fund Managing Director Kristalina Georgieva estimated that one-third of the world economy would be in recession.
