Indonesia booked a $1.57 billion trade deficit in the first 10 months of the year, from $5.57 billion recorded over the same period in 2018, according to Statistics Indonesia (BPS) data.
resident Joko “Jokowi” Widodo has inaugurated a new US$380 million polyethylene plant belonging to publicly listed PT Chandra Asri Petrochemical, which he said would help the government’s efforts to narrow the country’s current account deficit.
Speaking at the plant’s inauguration ceremony in Cilegon, Banten, Jokowi said the factory represented a “concrete step” made by the industry in reducing its dependence on imported raw or auxiliary materials.
“The development of Chandra Asri’s new plant is a concrete step [that] is needed by our country,” Jokowi said on Friday.
He went on to point out Indonesia’s reliance on imported polyethylene, which is a key material in the manufacturing of plastic bags and plastic bottles, among other things. He also reiterated the government’s commitment to encouraging the development of import-substitution industries to narrow Indonesia’s trade deficit.
The government has been struggling to reduce imports amid global trade frictions and efforts to boost domestic manufacturing, which has slowed in the last few years. It also encourages industries to start producing goods they usually buy from abroad by offering incentives and overhauling investment regulations.
Indonesia booked a $1.57 billion trade deficit in the first 10 months of the year, from $5.57 billion recorded over the same period in 2018, according to Statistics Indonesia (BPS) data.
The improvement had a positive impact on the country’s current account, which stood at a deficit of $7.7 billion in the third quarter, or 2.66 percent of GDP. That compares to the $8.5 billion deficit booked over the same period in 2018, according to Bank Indonesia data.
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