Indonesia Plans Revising Export Target to Curb Recession Impact

TEMPO.CO, Jakarta - Indonesian Cooperative and SME Minister Teten Masduki said that the government will revise next year's export target in a bit to anticipate the impact of the global recession. Indonesia has started to feel the impact of the recession, with export demand for manufacturing goods declining.

"Right now, the manufacturing industry is down and is making job cuts because world demand is declining. Therefore, next year we want to focus on the domestic market," Teten said in a press conference at his office, Monday, December 26, 2022.

Teten said that the government would divert export goods to the domestic market. To ensure a successful market transfer, the government will limit the entry of imported products. That way, Indonesian products, including those made by MSMEs, can thrive in the domestic market.

Teten said that import restrictions had been discussed through a coordination meeting with the Coordinating Minister for Economic Affairs Airlangga Hartarto. The plan was also discussed in a cabinet meeting with President Joko Widodo.

"If we can turn off the import tap and give [the market] to MSME products, it will serve as a momentum for MSMEs to take advantage of the global crisis and use that to build a better business fundamental," Teten said.

Nevertheless, Teten said there are a number of commodities need to be exported because global market demand is still high and they have great potential. Therefore, the Ministry will be curating selectively and providing assistance, from export licensing to financing.

"Together with Customs, we already have several models to facilitate exports," he said.

RIANI SANUSI PUTRI

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