JAKARTA – Indonesia’s exports are expected to grow by 4 percent this year to support the government’s economic growth target of 5-5.5 percent, according to Indonesian Minister of Trade Muhammad Lutfi.
Lutfi said global agencies, such as the International Monetary Fund (IMF) and the Organization for Economic Co-Operation and Development (OECD), have made corrections to their projections for the world economy and stated that the numbers will improve.
Indonesia is aiming for 5-5.5 percent economic growth this year. To achieve the economic growth target, exports must grow by 4 percent, while import growth cannot be more than 2 percent, household consumption must increase by 5 percent, and investment needs to grow by 13.7 percent, he said.
Although the increase in exports must reach 4 percent, the Trade Ministry is designing a strategy so that exports can grow by 6.3 percent, he added.
The Trade Minister’s optimism is supported by the trend of commodity supercycles, or commodities whose prices have risen rapidly compared to previous years, such as crude oil, LNG, rice, iron ore, and copper.
Some of the world’s major commodity prices recorded a very significant record increase in 2020, which triggered speculation of a commodity supercycle in 2020-2021 due to economic stimulus in developed countries, the weakening dollar exchange rate, and a drastic increase in demand in China and industrialised countries in Asia, he said.
Indonesia designed five strategies to promoting exports, including maintaining export markets and key exports, prioritising SMEs, breaking into non-traditional markets, capitalising on trade pacts, and reforming regulations, particularly the job creation bill.
Exports have made huge contributions to Indonesia’s GDP, helping the nation recover its economy./.