Indonesia’s 2022 trade balance reaches record high

Indonesia’s 2022 trade balance with a surplus of 54.46 billion U.S. dollars is the biggest on record so far. This trade balance was driven by export performance in 2022 which also set a new record with a value of 291.98 billion U.S. dollars.

 

Jakarta (Indonesia Window) – The Minister of Trade, Zulkifli Hasan, thanked Allah (God) because Indonesia’s 2022 trade balance value scored the highest record with a surplus of 54.46 billion U.S. dollars.

Indonesia’s 2022 trade balance surplus is the biggest one on record so far, Trade Minister Zulkifli Hasan said in his official written statement on Wednesday.

“I thank Allah (God) as the 2022 trade balance surplus of 54.46 billion U.S. dollars is the biggest record so far. This trade balance was driven by the 2022 export performance which also set a new record with a value of 291.98 billion U.S. dollars,” Zulkifli noted.

The minister explained that at the end of 2022, Indonesia’s trade balance again recorded a surplus in December 2022 of 3.89 billion dollars.

The surplus came from the non-oil and gas trade of 5.61 billion dollars and an oil and gas trade deficit of 1.73 billion dollars. This surplus continues the trend of the 32nd consecutive monthly surplus since May 2020.

The trade surplus was contributed by trades of several Indonesia’s main trading partner countries, with the United States being the largest contributor to the surplus with a value of 1.11 billion dollars, followed by India with 0.98 billion dollars, and the Philippines with 0.87 billion dollars.

In December 2022, Indonesia’s export value reached 23.83 billion dollars. This value fell 1.10 percent compared to November 2022 on a monthly basis (Month-on-Month /MoM), but still increased 6.58 percent compared to December 2021 on an annual basis (Year-on-Year/YoY).

China, Japan and the United States are the main markets for Indonesia’s non-oil and gas exports, the trade minister said, adding that in December 2022, the non-oil and gas export value of these partner countries was recorded at 9.92 billion dollars and contributed 44.39 percent to national non-oil and gas exports.

Cumulatively, total exports during the 2022 period were recorded at 291.98 billion dollars, an increase of 26.07 percent compared to the same period the previous year (YoY).

The increase in exports was supported by strengthening exports in the non-oil and gas sector which rose 25.80 percent (YoY) to 275.96 billion dollars and exports in the oil and gas sector which was up 30.82 percent (YoY) to 16.02 billion dollars.

Meanwhile, Indonesia’s total imports in December 2022 reached 19.94 billion dollars. This value increased by 5.16 percent compared to November 2022 (MoM).

The increase was triggered by an increase in oil and gas imports by 14.15 percent (MoM) and non-oil and gas imports by 3.60 percent (MoM).

The minister pointed out that the rise in imports in December 2022 was triggered by an increase in imports of all categories of goods used.

Imports of capital goods experienced the highest growth of 12.90 percent (MoM), followed by growth in imports of consumer goods which rose 7.71 percent, and raw/auxiliary materials rose 3.08 percent.

The increase in imports of capital goods and raw/auxiliary materials in this period was influenced by the continued recovery of the domestic industry as seen from the Indonesian Manufacturing Purchasing Manufacturing Index (PMI) which was at the level of 50.9.

The rate has increased from the PMI position in November 2022 which was at the level of 50.3. The imported capital goods products that experienced an increase in December 2022 included high-speed trains and vehicles for the transportation of goods.

Meanwhile, several raw/auxiliary materials that experienced an increase included diesel fuel, crude oil, and wheat.

Several consumer goods that increased significantly in December 2022 included garlic, fruits and meat.

The increase in imports of consumer goods was due to increased demands during the Christmas and New Year holidays and strengthening public purchasing power as reflected in the increase in the Consumer Confidence Index from 119.1 in November 2022 to 119.9 in December 2022.

By countries of origin, Indonesia’s non-oil and gas imports were dominated by China, Japan and Australia with a total share of 48.60 percent of total non-oil and gas imports in December 2022.

Meanwhile, the countries of origin of imports with the largest increase in non-oil and gas imports on a monthly basis were Norway which rose 758.83 percent, Finland (111.60 percent), Hong Kong (49.60 percent), Germany (42.05 percent), and Sweden (36.90 percent).

“Cumulatively, total imports for the January-December 2022 period reached 237.52 billion dollars, up 21.07 percent from the 2021 period (YoY). This import growth was triggered by a surge in oil and gas imports by 58.32 percent and an increase in non-oil and gas imports by 15.50 percent YoY,” Zulkifli said.

Reporting by Indonesia Window