Statistic bureau reported Indonesia booked a surplus US$21.74 billion in 2020, with total exports recorded $163.31 billion and import values $141.57 billion - Photo by Finance Ministry Office

JAKARTA (TheInsiderStories) – Statistic bureau reported Indonesia booked a trade surplus US$21.74 billion in 2020, with total exports recorded $163.31 billion and import values $141.57 billion, said the chairman today. In 2019, the country posted a trade deficit $8.70 billion with total exports $167.68 billion and imports $171.28 billion).

“When viewed, the commodities that drive the surplus are vegetable fats and oils, mineral fuels, and one more derived from iron and steel,” said Suhariyanto on Friday (01/15).

Iin December alone, he explained, the nation posted a trade surplus $2.1 billion after booked an export values $16.54 billion and imports of $14.44 billion. The surplus lower than previous month amounting to $2.62 billion.

According to Suhariyanto, the December’ export values higher 8.39 percent compared to November of last year worth of $15,26 billion also higher than previous year at $14.43 billion. While, the import values rose 14.00 percent compared to prior month $12.66 billion and in annual basis at $14.51 billion.

The bureau also reported Indonesia experienced a trade surplus $1.23 billion with United States, $866.30 mllion with India, and $468.90 million with Philippines. But the country’ trade with China still deficit $121.9 million, Australia minus $260.20 million, and Brazil deficit $203.30 million.

To boost Indonesian export, recently, Indonesia’ trade and defense ministry are exploring the mechanism of trade-off with several trading partners to boost the export values. Some commodities that were ready to be traded are palm oil, rubber, machinery, coffee, cocoa, tea, textile products, footwear, processed fish, furniture, fruits, copra, plastics, resins, paper, and spices.

The legal basis for the trade-off is Law Number 16 of 2012 concerning the Defense Industry, Government Regulation Number 76 of 2014 concerning Trade Return Mechanisms in the Procurement of Foreign Legal Entities, and the Government Regulation Number 29 Year 2017 concerning Paying Together and How to Deliver Goods.

Then, Defense Ministerial Decree Number 30 Year 2015 concerning Trade Returns, Local Contents, and Offset in the Procurement of Tools and Equipment from Overseas Security also Trade Ministerial Decree Number 40 of 2019 concerning Provisions for Purchase Returns for Procurement of Imported Government Goods.

It said, the benefits of trade-off is to overcome the barriers and constraints to export destinations and expand market areas and new products, provide on top an additional exports, save foreign exchange, and to overcome the difficulties in imports due to foreign exchange limitations.

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