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Indonesia eyes 6 percent growth in non-oil and gas exports after turbulent year
Trade Minister Muhamad Lutfi said the growth target was based on the projected path of Indonesia’s economic recovery this year.
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Trade Minister Muhammad Lutfi gestures during a press conference in Jakarta on Jan. 11. (Courtesy of the Trade Ministry/-)
T
he government is expecting to achieve 6.3 percent annual growth in Indonesia’s non-oil and gas exports this year as trading partners have started rolling out coronavirus vaccines to re-emerge from the pandemic-induced economic downturn.
Trade Minister Muhamad Lutfi said on Friday the growth target was based on the assumption that Indonesia’s economy would recover this year, in line with the forecast outlined by various international organizations.
“Of course, there will be many factors that come into play,” Lutfi said in a virtual presser. “First, the success of vaccination not only in Indonesia but also in its major trading partners. Second, the long-awaited reform through the Jobs Creation Law.”
The COVID-19 pandemic has disrupted international trade and global supply chains as mobility restrictions implemented in various countries around the world hampered logistics. In addition, the slowing global economy has resulted in weakening purchasing power and cooling demand.
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Indonesia’s overall exports fell by 2.57 percent year-on-year (yoy) to US$163.3 billion last year while imports slumped by a steeper 17.35 percent yoy to $141.6 billion. As a result, the country booked a trade surplus of $21.7 billion, the second-highest in history.
This year’s target signaled an expectation for a rebound in non-oil and gas exports, which were down 0.58 percent to $155 billion in 2020 from a year earlier, according to the ministry, quoting data from Statistics Indonesia (BPS).
