Indonesia posted a trade surplus US$2.01 billion in February supported by rising exports and low import values - Photo by BPS Office

JAKARTA (TheInsiderStories) – Indonesia posted a trade surplus of US$2.01 billion in February supported by rising exports and low import values, statistic bureau reported today. During last month, total exports were recorded at $15.27 billion and total imports amounted to $13.26 billion

“The increase in exports values supported by oil and gas and non-oil and gas exports,” Suhariyanto told reporters virtually on Monday (03/15).

He revealed, total export values in February recorded of $15.27 billion, down 0.19 percent compared previous month and rose by 8.56 percent from a year ago. In detailed, non-oil and gas exports amounted to $14.40 billion, down 0.04 percent compared to January and up by 8.67 percent from February 2020.

Cumulatively, the value of exports reached $30.56 billion, up 10.35 percent over the same period in 2020. Non-oil and gas exports also improves to $28.81 billion, an increase of 10.52 percent from a year ago.

Suhariyanto explained, the largest decline in non-oil and gas exports in February against January occurred in animal and vegetable fats and oils amounting to $639.5 million (27.11 percent). While the largest increase occurred in iron and steel amounting to $240.7 million (24.20 percent).

By sector, non-oil and gas exports from the processing industry from January to February 2021 jumped by 10.29 percent over the same period in 2020, exports of agricultural products up 8.81 percent, and exports of mining products and others rose by 12.19 percent. The largest non-oil and gas exports in February 2021 were to China, with values $2.95 billion, followed by the United States at $1.86 billion, and Japan of $1.20 billion, with the three contributions reaching 41.77 percent.

Then, exports to ASEAN and the European Union amounted to $2.99 billion and America of $1.13 billion, respectively. According to the province of origin, Indonesia’ largest exports until February came from West Java with a value of $5.16 billion (16.90 percent), followed by East Java $3.23 billion (10.56 percent), and Riau with $2.64 billion (8.63 percent).

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He continues, Indonesia’ import value in February dropped by 0.49 percent compared to January and up 14.86 percent compared to February. Oil and gas imports in February 2021 were valued at US $ 1.30 billion, down 15.95 percent compared to January 2021 or down 25.37 percent compared to February 2020.

Non-oil and gas imports in February reached $11.96 billion, rose by 1.54 percent compared to January and up 22.03 percent compared to last year. The largest decline in imports of non-oil and gas goods was pharmaceutical products of $96.9 million (38.03 percent) and the largest increase was in machinery and electrical equipment at $172.8 million (10.03 percent).

The three largest suppliers of imported non-oil and gas goods during January – February were China $8.06 billion (33.95 percent), Japan $1.86 billion (7.83 percent), and Singapore $1.31 billion (5.53 percent). Then, non-oil and gas imports from ASEAN $4.41 billion (18.57 percent) and the European Union $1.55 billion (6.54 percent).

According to the category of use of goods, the value of imports from January to February 2021 against the same period the previous year saw an increase of $348.5 million (15.24 percent), raw and auxiliary materials of $363.5 million (1.87 percent), and capital goods of $65.2 million (1.60 percent).

Recently, Minister of trade, Muhammad Lutfi, targeted Indonesian non-oil and gas export could grow by 6.3 percent of gross domestic product in 2021, especially industrial goods and high-tech product. According to him, several sectors in these kind of products are iron commodities steel, motor vehicles, and jewelry.

During last year, he adds, the ten main products contributed 59.8 percent of the total non-oil and gas exports. For iron and steel, the country is the second largest producer of these commodities in the world after China. He noted, more than 70 percent of the domestic steel is exported to the majoring partner country.

The minister said, steel commodities contributed 7 percent of total non-oil and gas export amounted to $10.85 billion, grew by 46.84 percent in annual basis. Then, motor vehicle products and their spare parts contribute of 4.3 percent the total export or worth of $6.6 billion.

In addition, jewelry are also became a major exports for the country, contributed  5.3 percent ot non-oil and gas exports with valued $8.2 billion or rose 24.21 percent from a year ago. Nearly 80 percent of jewelry products are exported to Singapore, Switzerland and Japan.

To boost this year’ targets, said Lutfi, Indonesia will continue to establish bilateral relations with United States (US) and China in the middle of a trade war between the two countries. Both countries is a strategic partner country for Indonesia, including in the midst of the pandemic.

With the US, Indonesia has received a special scheme through Generalized System of Preference whose utilization continues to increase until it reaches 15.2 percent. In addition, the economic and trade prospects is expected to be much better in the leadership of Joe Biden.

Written by Editorial Staff, Email: theinsiderstories@gmail.com