Indonesia is a country that has a lot of potential in various fields, including export. In 2017, Indonesia’s exports experienced significant growth, which is a good sign for the country’s economy. This article will discuss the growth of Indonesia’s exports in 2017.
Overview of Indonesia’s Export Growth in 2017
The Central Statistics Agency (BPS) reported that Indonesia’s exports in 2017 reached a value of US$168.8 billion, an increase of 16.22% compared to the previous year. The main contributor to this growth was the non-oil and gas sector, which increased by 19.85% compared to the previous year. Meanwhile, the oil and gas sector only increased by 1.99%.
Indonesia’s export volume in 2017 also increased by 23.28% compared to the previous year. The main export destinations for Indonesia were China, the United States, and Japan.
Factors Contributing to Indonesia’s Export Growth in 2017
There were several factors that contributed to the growth of Indonesia’s exports in 2017. One of the main factors was the improvement of global economic conditions. The global economy was recovering from the 2008 financial crisis, which led to an increase in demand for goods and services.
In addition, the depreciation of the rupiah against the US dollar made Indonesian products more competitive in the international market. This made Indonesian products more attractive to foreign buyers, which resulted in an increase in exports.
The Indonesian government also played a role in promoting and encouraging exports. The government implemented various policies to reduce export barriers and simplify export procedures. This made it easier for Indonesian companies to export their products, which resulted in an increase in exports.
The Impact of Indonesia’s Export Growth on the Economy
The increase in Indonesia’s exports in 2017 had a positive impact on the country’s economy. The growth of exports contributed to the country’s GDP growth, which reached 5.07% in 2017. The increase in exports also led to an increase in employment opportunities, as more companies hired workers to meet the demand for export products.
Furthermore, the increase in exports helped to reduce Indonesia’s trade deficit. The country’s trade deficit in 2016 was US$11.98 billion, while in 2017 it decreased to US$8.57 billion. This was due to the increase in non-oil and gas exports, which had a higher value compared to oil and gas exports.
Challenges Facing Indonesia’s Export Growth
Despite the positive growth of Indonesia’s exports in 2017, there were several challenges facing the country’s export sector. One of the main challenges was the lack of competitiveness of Indonesian products in the international market. Indonesian products faced tough competition from products made by other countries, such as China and Vietnam.
The lack of infrastructure and logistics facilities also hindered Indonesia’s export growth. Poor infrastructure and logistics facilities made it difficult for Indonesian companies to transport their products to foreign markets, which resulted in higher transportation costs and longer delivery times.
The Future of Indonesia’s Export Growth
The future of Indonesia’s export growth looks positive, as the government has been implementing various policies to improve the country’s export sector. The government has allocated funds for infrastructure development, which will improve transportation and logistics facilities and reduce transportation costs.
In addition, the government has also implemented policies to promote exports, such as providing incentives for companies that export their products. This will encourage more companies to export their products, which will result in an increase in exports.
The growth of Indonesia’s middle class is also expected to contribute to the country’s export growth. The middle class has higher purchasing power and a growing demand for imported goods, which will increase demand for Indonesian products in foreign markets.
Conclusion
The growth of Indonesia’s exports in 2017 was a positive sign for the country’s economy. The increase in exports contributed to the country’s GDP growth and helped to reduce the trade deficit. However, there were several challenges facing the country’s export sector, such as the lack of competitiveness of Indonesian products and poor infrastructure and logistics facilities.
The government has been implementing various policies to improve the country’s export sector, which will contribute to the future growth of Indonesia’s exports. The future of Indonesia’s export growth looks positive, and the country has a lot of potential in the international market.
