Minister of trade, Muhammad Lutfi, targeted Indonesian non-oil and gas export could grow by 6.3 percent in 2021, especially industrial goods and high-tech product - Photo by Trade Ministry Office

JAKARTA (TheInsiderStories) – 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 US$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.

“Although there was a decline in the automotive sector as a result of the sluggish global economic conditions caused the impact of COVID-19, the potential for exports of motor vehicles and spare parts is still very large,” adds by Lutfi in virtual conference end of last week.

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.

During last year, Indonesian exports to a number of non-traditional countries have grown amid pressures from the global economic growth. Export to Western Europe increased by 17.07 percent, Australia up by 14.52 percent, and Eastern Europe jumped 99.9 percent.

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.

Until November 2020, Indonesian exports to America rose by 3.57 percent over the same period in 2020, dominated by apparel 19.4 percent, electronics by 9.84 percent, and rubber products by 7.95 percent. While, imports from US decreased by 8.91 percent in the same month from 2019, dominated by materials extracting 12.74 percent, machinery 12.23 percent, followed by oil seeds by 10.95 percent.

He continued, with China, Indonesia’ trade and investment cooperation relations has established through the ASEAN – China Free Trade Agreement and Regional Comprehensive schemes Economic Partnership. In eleven months, Indonesian exports to China increased by 10.96 percent compared to the previous year, especially iron and steel 23.7 percent, minerals 21.48 percent, and palm oil 10.63 percent.

While, imports values from China decreased by 13.81 percent compared to the same period the previous year, dominated by electronics amounting to 23.51 percent, machines by 22.85 percent, and plastic products by 4.01 percent. He noted, that the total trade between both countries covered more than 30 percent of total trade in Indonesia during 2020.

“In the future, the relationship between Indonesia and the two countries. Its hoped that it will continue to run well and be more developed,” concluded by the minister.

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