JAKARTA – Indonesia’s trade performance recorded a surplus of 3.61 billion US dollars in October 2020. Thus, this is the sixth time trade balance Indonesia Has experienced a surplus in a row this year.
Researcher at the Institute for Economic and Social Research (LPEM), Faculty of Economics and Business, University of Indonesia (FEB UI), Mohammad Dian Revindo, assessed that a trade surplus occurred because export performance remained solid amid the Covid-19 pandemic. “Indeed, exports are solid during this pandemic. Export performance is almost the same as last year’s export, which is not a pandemic situation, meaning exports are very solid,” Revindo said, Thursday (19/11).
Based on the records of the Central Statistics Agency (BPS), the export value in October 2020 reached 14.39 billion US dollars, which is the largest value so far this year. October’s export performance grew 3.09 percent compared to September 2020. Meanwhile, compared to October 2019, the export value contracted only 3.29 percent.
Indonesia Benefited from the US and China Trade War
According to Revindo, the improvement in export performance was due to the fact that Indonesia benefited from the trade war between the United States and China. With the existence of a trade war. He said Indonesia has become a supplying country for US needs which were previously supplied from China.
“So Indonesia entered America to replace Chinese products. Food, beverages, electricity equipment, some textiles entered the US to replace Chinese products,” he said.
He assessed that the improving export performance was also due to the coordination of the relevant ministers to produce policies and decisions that would benefit Indonesia. In addition, the Ministry of Trade is considered to be observant of opportunities by making policies that do not hinder. “The Ministry of Trade can determine the priority scale, namely working on what products for which countries,” he said.
However, he said, the government should not be complacent. The government must be able to improve the quality of domestic goods in order to have high competitiveness.
He also appreciated the government’s move to enter into a Regional Comprehensive Economic Partnership (RCEP) trade agreement. According to him, RCEP can push Indonesia further into the global supply chain.