Indonesia's exports reached USD 236 billion as of November 2023, attributed to the downstreaming program of natural resources and agriculture, according to Coordinating Minister for Economic Affairs, Airlangga Hartarto. Notably, with infrastructure development acceleration, Indonesia's Completely Built-Up (CBU) car exports nearly hit 500 thousand units, with the Patimban Port playing a pivotal role. Airlangga highlighted that CBU car exports via Patimban already surpassed capacity, reaching 223 thousand units, indicating enhanced automotive logistics competitiveness, particularly in the 'Detroit Indonesia' or Bekasi-Karawang area. Regarding natural resource exports, Airlangga expressed satisfaction with remarkable outcomes, citing nickel exports at USD 30 billion compared to USD 2 billion in 2016 and palm oil exports at USD 24 billion. Indonesia now emphasizes exports of high-value-added products. Additionally, 2023 marked the first time Indonesia's Export Earnings (DHE) reached USD 146 billion, a significant increase from the usual USD 130 billion, attributed to competitive regulations mandating a 30% export forex retention domestically.
Formerly, Airlangga noted, exporters were requested without incentives, but in 2023, incentives for DHE placement were introduced to compete with Singapore, benefiting both entrepreneurs and bolstering the IDR. Furthermore, the government continues to pursue Comprehensive Economic Partnership Agreements (CEPA), having concluded CEPA with South Korea and reviewing the Indonesia-Japan Economic Partnership Agreement (IJEPA) focusing on billion-dollar industrial product cooperation. Looking ahead, Airlangga announced the government's intention to explore promising new export markets like Europe and the USA. Currently, Vietnam has economic cooperation agreements with both regions, enjoying 0% import duty tariffs for all manufactured products. Conversely, Indonesia still faces 0% import duty tariffs when shipping goods to these regions, necessitating market access opening through trade agreements.
