Indonesia is a country that is rich in natural resources, and its economy is heavily dependent on exports. Therefore, the growth of Indonesia’s export industry is crucial for the country’s economic development. In this article, we will discuss the development of Indonesia’s export industry in 2015.
Overview of Indonesia’s Export Industry in 2015
In 2015, Indonesia’s export industry faced a number of challenges. The global economic slowdown, particularly in China and other emerging markets, had a negative impact on Indonesia’s export growth. In addition, the weakening of the Indonesian rupiah against the US dollar also affected the country’s export competitiveness. However, despite these challenges, Indonesia’s export industry showed some positive growth in 2015.
According to the Central Statistics Agency (BPS), Indonesia’s total exports in 2015 amounted to USD 150.9 billion, a decline of 16.67% compared to 2014. However, if we exclude oil and gas exports, which were heavily impacted by the decline in global oil prices, non-oil and gas exports actually increased by 4.11% in 2015.
Key Export Products
Indonesia’s top export products in 2015 were mineral fuels, which accounted for 18.67% of total exports; followed by animal or vegetable fats and oils, which accounted for 13.73%; and machinery and mechanical appliances, which accounted for 10.29%. Other major export products included electrical machinery, wood and wood products, and textiles and textile products.
One interesting trend in 2015 was the growth of Indonesia’s furniture exports. According to the Indonesian Furniture and Handicrafts Association (Asmindo), Indonesia’s furniture exports increased by 24% in 2015, reaching USD 1.5 billion. This was mainly due to increased demand from the United States and Europe, as well as the depreciation of the rupiah.
Destination Markets
In 2015, Indonesia’s top export markets were China, which accounted for 13.77% of total exports; followed by the United States, which accounted for 11.96%; and Japan, which accounted for 11.83%. Other major export markets included India, Singapore, and South Korea.
China’s slowing economy had a negative impact on Indonesia’s export growth to China in 2015. Indonesia’s exports to China declined by 28.22% in 2015, compared to the previous year. On the other hand, exports to the United States increased by 7.23% in 2015, and exports to Japan increased by 2.19%.
Government Initiatives
The Indonesian government has implemented several initiatives to support the country’s export industry. In 2015, the government launched the National Export Development program, which aimed to increase the competitiveness of Indonesian products in the global market. The program included measures such as improving product quality and packaging, reducing logistics costs, and expanding market access.
The government also introduced export-import regulations to simplify export procedures and reduce costs for exporters. In addition, the government provided incentives for exporters, such as tax exemptions and duty-free imports of raw materials.
Conclusion
Despite the challenges faced by Indonesia’s export industry in 2015, there were some positive developments. Non-oil and gas exports increased, and the furniture industry showed strong growth. The government’s initiatives to support the export industry also helped to boost competitiveness and reduce costs for exporters.
Looking forward, Indonesia’s export industry will continue to face challenges, particularly in the current global economic climate. However, with the right policies and initiatives, Indonesia has the potential to further develop and expand its export industry in the coming years.
