Export Value Decrease and Trade Deficit, China to Blame
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16 February 2019 00:00 WIB
TEMPO.CO, Jakarta - Indonesia's export value recorded on January 2019 had experienced a decrease compared to last year. The condition resulted in a trade deficit. Coordinating Minister for Economic Affairs Darmin Nasution, said that such condition was due to slowdown in economic and trade growth in export destination countries, such as China, among others.
"Most exports are to China," Darmin said on Friday, February 15, 2019. As many as 13.52 percent of Indonesian export products goes to China followed by the United States and Jepang with 11.96 percent and 9.47 percent, respectively.
Currently, Indonesia's big selling export to China is crude palm oil and fossil fuels, such as coal. However, price and demand for both commodities are dropping, causing mounting pressure on Indonesia's export. "Products that we exported to China, cannot be easily diverted to other countries, because it is mainly mining and farm products," Darmin explained.
On February 15, 2019, the Central Statistics Agency (BPS) announced that Indonesia's trade balance on January 2019 was recorded at USD 1.16 billion. The value was slightly higher compared to the USD 1.03 billion recorded in December 2018, and almost 53 percent higher compared to the number recorded in January 2018 of USD 756 million.
On January 2019, Indonesia's export reached USD 13.87 billion, which is 4.6 percent lower year-on-year (yoy). Currently, around 91.1 percent of Indonesia's export commodities are vegetable oil and mineral fuel. Both commodities experienced a simultaneous export decrease of 12.47 percent nd 15.2 percent, respectively.
As a result, the total export of Indonesian products to China on January 2019, was recorded at USD 1.17 billion, a number 10 percent lower compared to January 2018 of ISD 1.92 billion.
FAJAR PEBRIANTO
