Indonesia is known for its abundant natural resources, making it a valuable player in the global market. In 2017, the country recorded its highest export figures yet, making it a significant contributor to the world economy. This article will explore the top exports of Indonesia in 2017 and their contribution to the country’s economic growth.
The Top 5 Exports of Indonesia in 2017
Indonesia’s export figures in 2017 reached a total of $168.8 billion, which is a 16.22% increase from the previous year. The following are the top 5 exports of Indonesia in 2017:
1. Mineral Fuels
Mineral fuels were Indonesia’s top export commodity in 2017, accounting for 28.29% of the country’s total export value. The country is a major producer and exporter of coal, as well as crude oil and petroleum gas. These resources are in high demand globally, particularly in emerging economies such as China and India.
2. Animal and Vegetable Oils and Fats
Animal and vegetable oils and fats were the second-highest export commodity of Indonesia in 2017, accounting for 10.72% of the country’s total export value. Palm oil is the primary export product in this category, with Indonesia being the world’s largest producer and exporter of the commodity.
3. Electrical Machinery and Equipment
Electrical machinery and equipment were Indonesia’s third-highest export commodity in 2017, accounting for 10.53% of the country’s total export value. This category includes electronic integrated circuits, telecommunications equipment, and other electrical devices.
4. Iron and Steel
Iron and steel were the fourth-highest export commodity of Indonesia in 2017, accounting for 3.21% of the country’s total export value. Indonesia is a significant producer and exporter of steel products, which are in high demand globally, particularly in the construction industry.
5. Rubber and Rubber Products
Rubber and rubber products were Indonesia’s fifth-highest export commodity in 2017, accounting for 3.17% of the country’s total export value. Indonesia is the world’s second-largest producer and exporter of natural rubber, which is used in the production of various products, including tires, footwear, and pharmaceuticals.
The Contribution of Indonesia’s Top Exports to the Country’s Economic Growth
Indonesia’s export performance in 2017 was a significant contributor to the country’s economic growth. The export figures helped to boost the country’s GDP and create employment opportunities for its citizens. The following are some of the contributions of Indonesia’s top exports to the country’s economic growth:
1. Increased Employment Opportunities
The production and export of Indonesia’s top export commodities have led to increased employment opportunities in the country. For instance, the palm oil industry, which is the primary contributor to the animal and vegetable oils and fats export category, employs millions of people in various stages of production.
2. Boosted GDP
The export figures of Indonesia’s top exports have contributed significantly to the country’s GDP. In 2017, the country’s GDP grew by 5.07%, which was largely attributed to the growth in exports.
3. Improved Trade Balance
The export figures of Indonesia’s top exports have also helped to improve the country’s trade balance. With a positive trade balance, the country is less dependent on imports, thereby reducing its vulnerability to external factors such as exchange rate fluctuations.
4. Increased Foreign Exchange Earnings
Indonesia’s top exports have also contributed to increased foreign exchange earnings for the country. The earnings from exports help to support the country’s foreign exchange reserves, which are essential for maintaining a stable economy and currency.
The Future of Indonesia’s Export Industry
Indonesia’s export industry is expected to continue its growth trajectory in the coming years. The government has put in place measures to support the industry, such as offering tax incentives and improving infrastructure. The following are some of the factors that are expected to drive the growth of Indonesia’s export industry:
1. Strong Domestic Demand
With a population of over 260 million people, Indonesia has a large domestic market that is expected to continue to grow. The increasing middle class in the country is driving demand for consumer goods, which presents opportunities for exporters.
2. Favorable Trade Policies
Indonesia is a member of various trade agreements, such as ASEAN, APEC, and WTO. These agreements provide opportunities for the country to expand its export markets and reduce trade barriers.
3. Growing Regional and Global Demand
The emerging economies in the Asia-Pacific region, particularly China and India, are expected to continue to drive demand for Indonesia’s top export commodities. Additionally, global demand for renewable energy sources, such as palm oil and rubber, is expected to increase in the coming years.
Conclusion
Indonesia’s export industry is a vital component of the country’s economy, contributing significantly to its GDP and creating employment opportunities for its citizens. In 2017, the country’s top exports were mineral fuels, animal and vegetable oils and fats, electrical machinery and equipment, iron and steel, and rubber and rubber products. These exports have helped to improve the country’s trade balance, boost its foreign exchange earnings, and create opportunities for its citizens. With favorable trade policies and growing demand for its top export commodities, Indonesia’s export industry is expected to continue its growth trajectory.
