Exports, imports to support Indonesia’s economic growth in 2022

Jakarta (Indonesia Window) – Exports and imports could strongly support  Indonesia’s economic growth in 2022, Head of the Trade Assessment and Development Agency of the Ministry of Trade, Kasan, has said.

“Exports and imports are expected to be a high support for the economic growth next year, apart from household consumption,” Kasan said at a webinar entitled Recovery On Fragile Fundamentals on Wednesday (Nov. 24).

Earlier, the government predicted that the economy in 2022 would grow 5-5.5 percent with contributions from household consumption that would grow by 5-5.3 percent, exports (5.8-7.9 percent) and imports (6.0-8.6 percent).

In addition, the government’s consumption is projected to grow by 2.8-4.5 percent and investment by 5.6-7.0 percent.

The Ministry of Trade is drafting the outlook for strategic trade indicators for 2022, including the goods trade balance, which is assumed to reach 19.1 billion-19.6 billion U.S. dollars.

Real exports of goods and services are also estimated to grow 4.16 percent, non-oil exports to grow 5.40-5.79 percent, and the ratio of exports of services to GDP (Gross Domestic Product) to grow 1.5 percent.

According to Kasan, economic conditions in 2022 would be influenced by various factors, including the successful handling of COVID-19, recovery in public consumption, implementation of structural reforms, and prospects for global economic growth.

Policies for handling COVID-19 which are carried out comprehensively and massively through the community activity restrictions along with accelerating vaccination and maintaining health protocols simultaneously, are expected to be able to increase public confidence to carry out social and economic activities.

Reporting by Indonesia Window