Indonesia Exports and Imports Soar in the First Quarter of 2022
Rising worldwide commodity prices push Indonesia exports to surge.
Trade is surging and riding high in Indonesia as commodity prices continue to increase globally. This is due to the world transitioning towards a post-pandemic phase as well as the Russia-Ukraine war. As a result, Indonesia’s exports and imports are truly flying high, achieving record-high levels in March 2022.
A trade surplus of USD4.53 billion in March maintains the positive stance of a six-month high growth. This denotes 23 successive months of surfeit and is a three-fold increase from previous financial years. November and December 2021 saw exports at USD22.84 billion and USD21.35 billion, respectively. In March 2022, exports hit USD26.50 billion while imports were at USD21.97 billion.
This record-breaking streak characterises Indonesian trade over the past few years due mainly to global commodity price increases. The expectation is of a net positive impact on Indonesian business and economy.
Unprecedented Levels of Demand
According to BPS (Badan Pusat Statistik or Statistics Indonesia), Indonesia exports and imports are enjoying a year-on-year (YOY) rise. Since BPS’ first listing in 1993, this was the first time exports hit 44.36% while imports hit 30.85% YOY. Comparatively, on a month-to-month (MTM) basis, increases of 29.42% and 32.03%, respectively, were seen.
Rising industry demand, higher oil prices, and businesses’ increasing operations continue to act as growth factors. In imports, there is an ongoing surge for capital goods and raw materials. However, with rising global demand for coal, crude palm oil, and metals, export easily outweighs import demands.
CELIOS (Centre of Economic and Law Studies) points out that recent improvements in South Korea’s mobility curbs were helpful. Nor did the lockdowns in China adversely impact exports, bringing in USD5.48 billion in trade. India and the United States continue to be great for trade. They are strong export destinations, generating a trade surplus of USD2 billion and USD1.2 billion in March.
Capitalising on Trade Surplus
BPS data strongly indicates that Indonesia’s exports will continue rebounding well into the second quarter of 2022. Domestic inflation is also at an all-time low, with a Bank Indonesia benchmark rate of 3.5% in March. With reliable support and sustainable spending from the Government, Indonesia continues to be an attractive place to start a business.
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