Indonesia's Export Up by 21.64 Percent in the Third Quarter of 2022, Thanks to Domestic Industry Performance

JAKARTADAILY.ID – Indonesian Minister of Trade Zulkifli Hasan revealed that export growth continues to be a driving force for the Indonesian economy, which grew 5.72 percent in the third quarter of 2022.

During this period, economic growth was supported by exports of goods and services, which rose 21.64 percent year on year with a contribution of 26.23 percent, an increase from the contribution in the second quarter with a percentage of 24.74 percent.

"Indonesia's economic performance continues to improve during 2022. In the third half of 2022, Indonesia's economy grew higher than the achievement of the first half by 5.02 percent and by the second quarter 5.45 percent. Indonesia's economic growth is of course also supported by an increase in national export performance, "said Zulkifli Hasan in a written statement, quoted Thursday, November 10, 2022.

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Based on data from the Central Statistics Agency (BPS), in terms of expenditure, the component of exports of goods and services grew by 21.64 percent, the second highest after imports of goods and services which grew by 22.98 percent. The increase in export performance this year was influenced by several factors.

One of the phenomena is the increase in world export commodity prices (commodity supercycle). In addition, the improvement in the performance of the domestic industry towards the improvement in the Purchasing Index (PMI) of the Indonesian manufacturing industry also contributed to boosting Indonesia's manufacturing exports until the third half of 2022 with a contribution of 46.21 percent of Indonesia's total exports.

“Several commodities that will experience an increase in prices in 2022 include coal, palm oil, nickel, and coffee. Meanwhile, Indonesia's manufacturing PMI has always been above 50, even in September it reached the highest figure throughout 2022, which was 53.7," explained Zulkifli Hasan.

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According to Zulkifli Hasan, the value of Indonesia's exports in the third half was the highest quarterly export value in the last two years. In the third half of 2022, Indonesia's total exports reached $78.20 billion, an increase of 27.30 percent on an annual basis. This performance was supported by non-oil and gas exports which reached $73.84 billion with a growth of 26.28 percent.

Indonesia's main non-oil and gas export products in the third quarter of 2022 are mineral fuels (HS 27), animal/vegetable fats and oils (HS 15), iron and steel (HS 72), electrical machinery and equipment (HS 85), and vehicles and their part (HS 87).

“Especially for coal (HS 27), in the third Half there was a rapid increase from $8.84 billion in the third half of 2021 to $15.72 billion in the third quarter of 2022," he explained.

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In terms of objectives, he continued, Indonesia's non-oil and gas export performance also recorded a positive performance against major trading partner countries. China still occupies the first position as Indonesia's trading partner country with an export value of $17.34 billion in the third quarter of 2022. This export value contributed 23.49 percent of Indonesia's non-oil and gas exports in the third quarter of 2022 and experienced an increase of 29.70 percent.

"Besides China, exports to India also grew rapidly in the third quarter by recording a value of $6.48 billion or growing 61.18 percent," added the Minister of Trade Zulkifli Hasan.