Indonesia's export performance in the second quarter grew by 19.74%. This growth supported Indonesia's economic growth in the second quarter so that it was able to grow positively by 5.44% year on year (YoY).
"Indonesia's export performance in the second quarter grew the highest at 19.74%. This export performance became an accelerator to support the Indonesian economy in the second quarter which grew positively by 5.44% YoY. This is a momentum that we need to maintain in the midst of weakening global economic conditions and increasing inflationary pressures in various countries," explained Trade Minister Zulkifli Hasan in a written statement, Sunday (7/8/2022).
Zulkifli emphasized that Indonesia's economic growth in the second quarter of 2022 was higher than the previous quarter's achievement of 5.01% (YoY).
"This economic growth even managed to surpass several trading partner countries such as Singapore with economic growth of 4.8%, South Korea (2.9%), the United States (1.6%), and China (0.4%) in the second quarter of 2022," Zulkifli detailed. Based on data from the Central Statistics Agency (BPS), the export component of goods and services experienced the highest growth with a contribution of 24.68% of gross domestic product (GDP). "The high strengthening of exports was partly driven by the increase in world commodity prices due to the conflict between Russia and Ukraine which resulted in disruption of global supply and an increase in demand from partner countries after the pandemic," said Zulkifli.
Furthermore, Zulkifli explained that in the second quarter, Indonesia's oil and gas exports reached US$ 4.46 billion, or grew 35.17% compared to the first quarter of 2022. Meanwhile, Indonesia's non-oil and gas exports were recorded at US$ 70.46 billion, or grew 12.12% compared to the first quarter of 2022. Export products that support Indonesia's economic growth in the second quarter of 2022 include mineral fuels (HS 27) such as coal, iron and steel (HS 72) which are nickel derivative products, metal ore (HS 26), electrical machinery and equipment (HS 85), and various chemical products (HS 38). Coal exports (HS 27) in the second quarter were recorded to increase rapidly from US$ 8.87 billion in the first quarter to US$ 15.24 billion in the second quarter of 2022, or grew 71.83% quarter to quarter (q-to-q). In addition to the main commodities, Zulkifli said that several Indonesian export products showed very positive performance such as fertilizers (HS 31), ships/boats (HS 89), as well as nickel products and goods thereof (HS 75), Zulkifli added that export performance to Indonesia's main trading partner countries in the second quarter was also recorded positive. Exports to the PRC, which is Indonesia's main trading partner country, were recorded at US$ 15.18 billion. The value of exports to the PRC contributed 21.54% of Indonesia's exports in the second quarter. In addition, in the same period, exports to India also grew rapidly, amounting to US$ 6.89 billion, or an increase compared to the first quarter which was recorded at US$ 4.53 billion.
Meanwhile, in terms of imports, statistical data shows that in the second quarter Indonesia's imports recorded a positive growth of 4.5% compared to the first quarter. Zulkifli explained that this import growth mostly came from an increase in the value of oil and gas imports which reached US$ 10.84 billion in the second quarter, or an increase compared to the first quarter which was recorded at US$ 8.62 billion. "With high export growth, Indonesia's trade balance in the second quarter recorded a fairly wide surplus of US$ 15.55 billion. This value exceeded the surplus in the first quarter which was only recorded at USD 9.33 billion," said Zulkifli. Meanwhile, continued Zulkifli, in the January-June 2022 period, Indonesia's total trade balance surplus was 24.89 billion. This, said Zulkifli, made history because it became the highest and surpassed the previous highest surplus in 2007 of US$ 20.15 billion. Zulkifli reviewed that the current turbulent global situation is expected to continue to provide benefits to commodity prices and become a 'windfall' for Indonesia's commodity export performance in the future. "Nevertheless, the Government of Indonesia continues to anticipate through strengthening domestic production factors and prioritizing programs that maintain price stability and availability of staples. In addition, the Ministry of Trade is also actively diversifying export market access through a number of trade agreements to maintain very good export performance," said Zulkifli.
