I remember our trade balance with China in 2012 was a deficit of US$7.7 billion. In 2021, our trade balance was in deficit by US$2.4 billion because we were able to export steel. This year I assured that we would have a surplus with China
Jakarta (ANTARA) – President Joko Widodo (Jokowi) assures that the trade balance between Indonesia and China will be in surplus in 2022.
This increase is inseparable from the government policy of implementing industrial downstream, particularly for mining raw materials.
The industrial downstream may have boosted exports and encouraged the improvement in the trade balance, Jokowi noted.
“I remember our trade balance with China in 2012 was in deficit by US$7.7 billion. In 2021 our trade balance was in deficit by US$2.4 billion because we were able to export steel This year, I assured that we will have a surplus with China,” Jokowi noted in his remarks at the Indonesian Chamber of Commerce and Industry (KADIN) leaders’ briefing here on Tuesday.
For example, the results of the policy to stop the export of raw nickel led to an increase in Indonesia’s trade value, he said.
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According to the President, five to seven years ago, nickel exports were valued at only US$1.1 billion, or about Rs.16 trillion. This figure has risen to US$28 billion, or about Rs 306 trillion, in 2021.
“At the end of the day, that nickel (export value) will be around $35 billion to $40 billion, because the derivatives aren’t finished,” he noted.
Indeed, the Head of State recalled that the first time he had implemented the policy of stopping raw nickel exports, he had received several complaints, in particular from KADIN, who claimed that Indonesia did not was not ready with such a policy.
Thus, on the strength of the observed success, the Head of State invited the ranks of KADIN to play an active role in encouraging the endorsement of the mining industry.
“Please implement this for other raw materials not just a nickel. If you can’t stand alone, find a partner to join your business. Please ask the head of KADIN, every day there are people who come from Korea, Japan, China and Europe are showing enthusiasm to invest in Indonesia,” Jokowi remarked.
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The president believes that in the end, entrepreneurs from these countries will have no choice but to bring their industries to Indonesia. KADIN members should be able to take advantage of this by playing a more active role.
“Join them because we really need technology. We also need investment, so that there is an influx of capital. Things like this need to be done,” Jokowi stressed.
Although the President assured a trade balance surplus between Indonesia and China in 2022, the latest report from Statistics Indonesia (BPS) indicated that Indonesia is still running a deficit.
The latest BPS data indicates that the value of exports between Indonesia and China during the period January-July 2022 reached $34.13 billion, while imports stood at $38.27 billion. , a deficit of $4.14 billion.
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