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On 6 June 2023 Indonesia Investments released the May 2023 edition of our monthly report. The report discusses key economic, political and social issues that impacted on Indonesia in the month of May 2023.
On 15 May 2023 Indonesia’s Statistical Agency (BPS) released the latest trade data of Indonesia. As expected, we saw a heavy decline in Indonesia’s export and import performance in April 2023. But, because imports plunged heavier than exports, it also meant Indonesia could enjoy a comfortable USD $3.94 billion trade surplus.
On Thursday (6 April 2023), Indonesia Investments released the March 2023 edition of its monthly report. In this report we offer in-depth analyses of the key economic, political and social matters that impacted on Indonesia in the month of March 2023.
On 06 March 2023, Indonesia Investments released its latest monthly report titled 'Normalizing Economic Growth'. As usual, we aim to present in-depth analyses of topics that are relevant in the context of economic, political and social developments in Indonesia.
On 5 February 2023, Indonesia Investments released the January 2023 edition of its monthly report. This report discusses and analyses a number of important economic, social and political topics (all related to Indonesia) that were relevant in the month of January 2023.
In mid-January 2023 Indonesia’s Statistical Agency (Badan Pusat Statistik, or BPS) released Indonesia’s December 2022 trade data, implying we now also have a clear view of the country’s trade performance in full-2022.
Over the past two (or three) months we have emphasized that it is worth following Indonesia’s trade performance in the last quarter of 2022 (Q4-2022) as these export and import data should give some clues whether the world (and Indonesia) is bound to experience an economic hiccup at the beginning of 2023.
Indonesia’s export performance was impressive in August 2022, touching a new all-time record level of USD $27.91 billion. It was particularly the strong rebound in the value of refined palm oil shipments that pushed Indonesian exports higher. Imports into Indonesia also increased, albeit at a much slower pace, which especially came on the back of sharp growth in imports of capital goods.
As expected, Indonesia’s trade performance rebounded strongly in June 2022. This was certainly not a surprise considering the country’s exports had been held back significantly in May 2022 because of the government’s palm oil export ban that was imposed between 28 April 2022 and 23 May 2022 (in an effort to stabilize domestic cooking oil prices).
Last month when we discussed the impressive December 2021 trade performance of Indonesia (when its exports remained strong at near-record high territory, while imports soared to a record high), we ended our article with several ‘things’ to watch:
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On 15 October 2019 the first edition of the ‘Indonesia Trade & Investment Summit’ was held at the Ritz Carlton ballroom at Pacific Place Jakarta in the Sudirman Central Business District (located in South Jakarta).
While many are relieved to see a trade surplus for Indonesia in August 2019, the picture does not look too positive when we delve a bit deeper in the data, and shows that global conditions are far from positive amid contracting international trade and subdued global economic growth (with ongoing tariff tensions between the United States and China being a key issue).
After nearly nine years of talks and negotiations (although communication between both sides had been put to a halt - amid diplomatic tensions – at more than one occasion over these nine years) Indonesia and Australia finally signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) in Jakarta on 4 March 2019. It is an agreement that launches a brand new chapter in economic relations and cooperation between Australia and Indonesia.
Based on the latest data from Indonesia’s Statistical Agency (BPS), Indonesia recorded a USD $227.1 million trade surplus in September 2018. Although it is a very small surplus, it did lead to some optimism. After all, Indonesia had recorded big monthly trade deficits of USD $2.0 billion and USD $944.2 million in July 2018 and August 2018, respectively.
Based on the latest data of Indonesia’s Statistics Agency (BPS), Indonesia’s trade deficit was recorded at USD $1.02 billion in August 2018. Although improving from the USD $2.03 billion trade deficit one month earlier (which constituted Indonesia’s biggest monthly trade deficit in five years), the deficit remains robust and therefore causes persistent concerns about the country’s current account deficit and the rupiah exchange rate.
The big news story today is that US tariffs on USD $34 billion worth of Chinese goods came into effect this morning (06/07). Considering China immediately imposed retaliatory tariffs on US imports, it means we are witnessing the start of the global trade war. There have been major concerns over simmering trade tensions ever since US President Donald Trump announced steep steel and aluminum tariffs back in late-February 2018. Now, however, the trade war has really arrived.
Chinese Premier Li Keqiang arrived in Indonesia on Sunday (06/05) for a two-day visit. Part of the visit was a meet up with Indonesian President Joko Widodo (at the Presidential Palace in Bogor) to discuss bilateral trade and investment. Key points on the agenda were the strengthening of trade between both nations and enhanced cooperation on infrastructure development projects in Indonesia, including dams and railways.
Indonesia may file a complaint at the World Trade Organization (WTO) over Vietnam's recent decision to tighten regulations related to car imports. Through Decree No. 116/2017/ND-CP on Overseas Vehicle Type Approval (VTA) (which has been in effect since 1 January 2018), Vietnam requires car exporters to obtain VTA certification first (from authorities in the exporting nation) before being allowed to export cars into Vietnam. This VTA details incoming vehicles' quality, safety and environmental protection.
On Wednesday (18/04) Indonesian Industry Minister Airlangga Hartarto met Norwegian Minister of Fisheries Per Sandberg to discuss trade. In the meeting Hartarto requested easier access for several Indonesian products on the Norwegian market. For example, lower tariffs for textiles and footwear. Meanwhile, Indonesia also wants to keep access to Norway for products that are derived from palm oil. Recently, Norway's parliament voted to ban the public procurement and use of palm oil-based biofuel.
At the Indonesia-Africa Forum (IAF), held on 10-11 April 2018 in Bali, Indonesia agreed to negotiate preferential trade agreements (PTAs) with three African countries: Mozambique, Morocco, and Tunisia. Trade talks are part of a strategy to widen Indonesia's export markets. Considering heightened concerns over global trade as the USA and China - the two biggest trade partners of Indonesia - are implementing tariffs, Indonesia seeks to tap new markets, hence reducing its dependence on traditional export markets thus reducing the impact of US-China related trade turmoil.
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