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Jakarta Post

Export recovery and government reform for Indonesia's future

  • Andry Asmoro

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, April 6, 2021   /  05:14 pm
The Jakarta Post Image
Central Java Governor Ganjar Pranowo descends the steps of a CV Laksana double-decker bus intended for exporting to Bangladesh, at an export launch ceremony for the buses on Feb. 22, 2020 at the company’s factory in Semarang.(Antara/Ant)

The global economy has recovered from the rock-bottom level it reached last year. If we look at two main indicators for global recovery, the Purchasing Managers’ Index (PMI) and global export performance, both recorded a continued upward trend. As per end March, most countries have reached a level above the PMI threshold of 50, indicating that the manufacturing sector started growing in the second half of 2020. The figures are in line with the PMI trajectory in Japan, one of Indonesia’s major export destinations. PMI recovery has had a positive impact on the export performance of emerging markets with the trajectory headed northward. India and Indonesia showed significant improvements from rock-bottom levels, while China has emerged as a major driver of trade recovery, as it was relatively unaffected compared to other countries in terms of export growth. As a result ...