The government of Indonesia has revised upward its target for non-oil and gas export growth to 11% in 2018 from the earlier 5% to 7% after export growth accelerated last year.
Trade Minister Enggartiasto Lukita said the revision was based on optimism stemming from the global economic condition and the increase in the prices of certain commodities, including coal, which would directly impact Indonesia’s exports.
“The target of 11 per cent growth could be reached. I want it to be even higher. But we do not know what will happen in the future,” Enggartiasto said, as quoted by state-run Antara News.
In 2017, Indonesia’s export value was recorded at US$168.73 billion, an increase of 16.2% compared with the $145.2 billion posted in the preceding year. Last year’s exports have surpassed the previousgrowth target of 5.6%, Enggartiasto noted.
The minister disclosed that export growth was supported by an increase in the non-oil and gas exports at 15.8%, and oil and gas exports at 20.1%.
He stated that the ministry implemented some strategies to increase exports and reoriented the task of trade representatives overseas to act “not only as a government agent but also as business and marketing agent.”
In a bid to boost exports to non-traditional markets, Enggartiasto said the ministry had sent its trade mission to South Africa, Nigeria, Egypt, Russia, and Chile, realizing transactions worth $264.7 million last year.
“Non-oil and gas exports to non-traditional markets, such as Africa, Latin America, Middle East, and South Asia, have shown positive growth in 2017,” he added.
He expressed belief that this positive momentum has continued into early 2018.
“I accompanied the President [Joko Widodo] on his tour to South Asia, covering Sri Lanka, India, Pakistan, and Bangladesh. Apart from accelerating the international negotiation process, we also sent a trade mission to India, with potential transactions reaching $2.16 billion, and another mission to Pakistan, with transactions worth $115.02 million,” he said.
In the energy sector, the ministry has signed an agreement to export liquefied natural gas to Pakistan and Bangladesh worth $10 billion.
“India, Pakistan, and Bangladesh are among the 10 largest contributors to Indonesia’s trade balance surplus,” he stated, adding that the three countries are expecting more Indonesian products to enter their markets.
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