Jakarta, CNBC Indonesia – Indonesia's trade balance again recorded a surplus of USD 3.31 billion in December 2023. Minister of Trade Zulkifli Hasan said this amount was even higher than November 2023, which was only USD 2.41 billion.
“The December 2023 surplus consists of a non-oil and gas surplus of USD 5.20 billion and an oil and gas deficit of USD 1.89 billion. The re-recording of a trade balance surplus in December indicates that Indonesia is continuing its surplus trend from previous months,” explained Trade Minister Zulkifli Hasan in an official statement, Tuesday (16/01/2024).
Zulkifli explained that Indonesia's trade surplus in December 2023 was contributed by trade with several countries. Where India contributed the largest surplus with a value of USD 1.42 billion, followed by the United States (US) USD 1.12 billion, and the Philippines USD 0.70 billion.
Meanwhile, the countries contributing to the largest trade deficit in December 2023 were Australia at USD 0.60 billion, Singapore at USD 0.53 billion, and Malaysia at USD 0.34 billion.
Thus, Indonesia's trade balance in 2023 recorded a surplus of USD 36.93 billion. This surplus was contributed by a non-oil and gas surplus of USD 56.84 billion and an oil and gas deficit of USD 19.91 billion.
“The 2023 trade surplus of USD 36.93 billion is a significant achievement for Indonesia amidst global economic and trade uncertainty in 2023. This surplus cannot be separated from the 2023 export performance achievement of USD 258.82 billion, which is the second highest export figure after the record in 2022 then amounted to USD 291.90 billion,” said Trade Minister Zulkifli Hasan.
December 2023 Exports Increase
Indonesia's export value in December 2023 reached USD 22.41 billion, or an increase of 1.89 percent compared to exports in November 2023 (MoM). This increase in exports was driven by an increase in non-oil and gas exports by 1.06 percent and an increase in oil and gas exports by 15.28 percent MoM.
The increase in the value of non-oil and gas exports in December 2023 occurred in the mining sector by 13.04 percent. Meanwhile, the agricultural sector and processing industry were the sectors that contracted with exports decreasing by 4.86 percent and 1.99 percent MoM respectively.
In December 2023, the main non-oil and gas export products with the largest increase in export value include iron and steel goods (HS 73) which rose 59.19 percent, ore, slag and metal ash (HS 26) which rose 37.37 percent, copper and goods therefrom (HS 74) rose 28.29 percent, dregs or food industry waste (HS 23) rose 26.99 percent, and machinery and mechanical equipment (HS 84) rose 17.69 percent MoM.
In the midst of increasing exports in December 2023, there are several main non-oil and gas export products that have fallen quite significantly. Some of them are tobacco and cigarettes (HS 24) which fell 29.90 percent, animal or vegetable fats and oils (HS 15) fell 22.52 percent, tin and goods therefrom (HS 80) fell 20.73 percent, processed from flour (HS 19) fell 16.96 percent, and vehicles and parts (HS 87) fell 14.85 percent MoM.
Minister of Trade Zulkifli Hasan revealed that China, the US and India will be the main markets for Indonesia's non-oil and gas exports in December 2023. The value of non-oil and gas exports from these three countries is USD 9.67 billion and contributes to 46.20 percent of national non-oil and gas exports.
Several non-oil and gas export destination countries with the highest increase in exports in December 2023 include Turkey which rose 122.07 percent, Canada rose 115.85 percent, Spain rose 29.74 percent, Australia rose 21.38 percent, and Russia rose 12.62 percent. MoM. Meanwhile, trading partner countries with the deepest decline in Indonesia's non-oil and gas exports include Egypt down 41.11 percent, Switzerland down 35.71 percent, the United Arab Emirates down 26.14 percent, Italy down 25.53 percent, and Thailand down 19.73 percent. percent MoM.
“In terms of region, the largest strengthening of non-oil and gas exports occurred in West Asia, which grew 174.34 percent, Northern Europe, which rose 96.88 percent, and South Africa, which rose 35.34 percent MoM,” said Zulkifli.
Cumulatively, total exports from January to December 2023 reached USD 258.82 billion, down 11.33 percent compared to the same period the previous year (YoY). The decline in export value was caused by weakening non-oil and gas sector exports which fell 11.96 percent (YoY) to USD 242.89 billion and oil and gas sector exports which fell 0.47 percent (YoY) to USD 15.92 billion.
Imports in December 2023 will decrease compared to November 2023
Indonesia's import value in December 2023 was recorded at USD 19.11 billion or down 2.45 percent compared to November 2023 (MoM). The decline in import performance in December 2023 was due to a decline in non-oil and gas imports by 2.26 percent and a decline in oil and gas imports by 3.33 percent (MoM).
Based on categories of use of goods, the decline in imports in December 2023 was triggered by a decline in imports of capital goods and raw or auxiliary materials. Imports of capital goods contracted the deepest by 10.51 percent and the largest decline in value occurred in smartphones, airplanes, radio transmitters, vehicles and their parts, and filtering or purification machines.
Meanwhile, imports of raw or auxiliary materials fell 0.97 percent MoM with the largest declines occurring in diesel fuel, potassium chloride, non-alloy steel, boilers and ferro-chromium. Meanwhile, imports of consumer goods in December 2023 actually increased by 2.00 percent MoM.
This increase in imports of consumer goods is in line with the strengthening of the Consumer Confidence Index (IKK) from 123.6 in November 2023 to 123.8 in December 2023. Several consumer goods with significant increases in December 2023 are rice, sugar, tanks, garlic and vaccines. .
Based on country of origin, Indonesia's non-oil and gas imports are dominated by China, Japan and Australia with a total share of 48.07 percent of total non-oil and gas imports in December 2023. The country of origin of imports with the largest decline in non-oil and gas imports in December 2023 was France which fell 45.07 percent, followed by Africa The South fell 33.70 percent, Canada fell 29.69 percent, Taiwan fell 19.58 percent, and the Philippines fell 17.23 percent MoM.
Cumulatively, the import value in 2023 will reach USD 221.89 billion or down 6.55 percent compared to 2022 (YoY). The import contraction was triggered by a decline in oil and gas imports by 11.35 percent and non-oil and gas imports by 5.57 percent YoY.
“We must remain optimistic and alert to the challenges in 2024. The Ministry of Trade continues to strive to improve export performance through synergy and collaboration with stakeholders, opening new market access, and increasing exports of value-added products,” concluded Zulkifli.
[Gambas:Video CNBC]
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