Non-oil and Gas Sector Exports Experienced Surplus in March 2023

VIVA – Minister of Trade Zulkifli Hasan said that the Indonesian export performance in March 2023 was getting better so it managed to record a surplus of US$2.91 billion. The trade surplus in March 2023 also continued the trend of consecutive surpluses since May 2020.

The surplus consisted of a non-oil and gas balance surplus of 4.58 billion US dollars and an oil and gas balance deficit of 1.68 billion US dollars.

"Indonesia's trade balance for March 2023 was a surplus of US$ 2.91 billion. Then, the surplus in March 2023 also continued the trend of consecutive surpluses since May 2020," the Minister said through a written statement in Jakarta, on Wednesday.

Furthermore, in terms of trade with Indonesia's partner countries, the highest contribution to the March 2023 surplus was trade with India which reached US$0.90 billion, the United States US$0.81 billion, and the Philippines US$0.81 billion, he explained. 

Meanwhile, trade with Australia, Thailand and Singapore resulted in the largest deficits of US$0.51 billion, US$0.39 billion and US$0.34 billion, respectively, he added.

 

Cumulatively, the trade balance for the January-March 2023 period was a surplus of US$12.25 billion. The trade surplus surpassed the surplus in the January-March period last year which amounted to US$9.33 billion.

The trade surplus for the January-March 2023 period consisted of a non-oil and gas surplus of US$16.57 billion and an oil and gas deficit of US$4.31 billion.

The total value of Indonesia's exports in March 2023 reached US$23.50 billion. This value increased by 9.89 percent compared to last month (MoM) although it decreased by 11.33 percent compared to March the previous year (YoY).

The increase in export value in March 2023 was driven by an increase in oil and gas exports of 12.79 percent and non-oil and gas exports of 9.71 percent compared to February 2023. The increase in exports in March 2023 was also an improvement compared to January and February 2023.

One of the factors causing the increase in export value in March 2023 was an increase in demand from the main export destination countries.

There were increases, among others, from Vietnam 24.43 percent, China (15.24 percent), India (13.25 percent), Singapore (9.15 percent), Taiwan (7.95 percent), and South Korea (7.84 percent MoM).

Minister Hasan also stated: "The performance of non-oil and gas exports in March 2023 on a monthly basis was quite good because it recorded growth in all sectors. In March, exports of the mining sector increased by 18.43 percent, then exports of the agricultural sector increased by 11.72 percent, and exports of the processing industry sector increased by 7.22 percent MoM,"

He continued, several non-oil and gas export products with the largest increase in value in March 2023 included precious metal materials, jewelry/gems, ores, slag and metal ash, copper and goods thereof, organic chemicals, and processed flour.

Indonesia's non-oil and gas exports to the majority of 30 major countries in March 2023 recorded an increase compared to last month. Some of the main export destination countries with the highest increase in non-oil and gas exports in March 2023 include Switzerland which jumped (214.33 percent), Russia (70.32 percent), Italy (58.89 percent), Belgium (40.80 percent), and Spain (40.06 percent).

In March 2023, non-oil and gas exports to the South America and West Asia regions strengthened by 66.59 percent and 160.11 percent, respectively. Non-oil exports to the Western Europe region also increased by 50.05 percent (MoM).

In addition, Indonesia's non-oil and gas exports to all Asian regions, except Central Asia, also increased. The increase occurred in East Asia (9.99 percent), Southeast Asia (2.9 percent), South Asia (4.27 percent), and Other Asia (13.73 percent) MoM.

"This shows that the Asian region is still a promising market for Indonesia's non-oil and gas exports," the Minister informed.