Sector
Trading
Indonesia, a developing country rich in natural resources and boasting the 4th largest population in the world, maintains an extensive trade presence. In 2023, the national trade balance reached US$480.7 billion, having grown significantly compared to the pre-pandemic period in 2019, when it stood at US$338.96 billion. Moreover, as of March 2024, the country has officially recorded a trade balance surplus for its 47th consecutive month.
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Trading
Indonesia, a developing country rich in natural resources and boasting the 4th largest population in the world, maintains an extensive trade presence. In 2023, the national trade balance reached US$480.7 billion, having grown significantly compared to the pre-pandemic period in 2019, when it stood at US$338.96 billion. Moreover, as of March 2024, the country has officially recorded a trade balance surplus for its 47th consecutive month.
In terms of exports, Indonesia’s top export commodity has historically been mineral-based fuels, especially coal. However, in the global market, Indonesia is a superpower in the exports of vegetable oils, particularly palm oil, having captured roughly 20 percent of the market with a total export value of US$35.2 billion in 2022. Behind that, Indonesia also leads in nickel exports, with a total export value reaching US$5.8 trillion or 14 percent of global exports.
In 2023, China emerged as Indonesia’s top partner for both exports and imports, with a total annual value of US$62.3 billion and US$62.2 billion, respectively. Meanwhile, the nation’s next top export destination is the US, with a total annual value of US$ 23.2 billion, while the next top import country of origin is Japan, with a total annual value of US$ 16.4 billion.
For trades on the level of individual consumers, the main driver of growth has been the rise in e-commerce throughout the past few years. E-commerce gross market value (GMV) grew by 20 percent from US$48 billion in 2021 to US$58 billion in 2022. This growth persisted to 2023, as e-commerce GMV grew by 7 percent to US$62 billion. E-commerce grew rapidly as it provided a means for Indonesian consumers to maintain access to goods and services during the pandemic period of 2020-2022. However, by the time the pandemic ended, e-commerce had grown ubiquitous and became a staple in the day-to-day lives of the average Indonesian.
Meanwhile, the domestic retail sector in Indonesia is driven by the sale of automotives. The retail of automotives alone in the country reached a gross domestic product (GDP) of US$174.35 billion in 2023, contributing to roughly 13.53 percent of Indonesia’s total GDP of US$1.3 trillion for that year at current market prices. Moreover, the country also achieved a per capita GDP of US$ 4,919.
Strong trade growth followed by increasing access to goods has bolstered local consumer confidence in Indonesia despite the period of uncertainty throughout 2023. According to Bank Indonesia’s monthly consumer confidence survey, Indonesians entered 2024 with high confidence, with the confidence index rising from 123.8 in December 2023 to 125.0 in January 2024. Moreover, this increase is even higher compared to same period the previous year, as a consumer confidence index of 123.0 was recorded for January 2023.
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Public demand for police reform necessitates the replacement of National Police chief Gen. Listyo Sigit Prabowo, who bears ultimate responsibility for the recent wave of bloody demonstrations. Otherwise, it would be yet another example of institutional failure, with the police under Listyo’s leadership remaining entangled in serious abuses of power, a lack of accountability and persistent public distrust.
Listyo previously served as the head of the Criminal Investigation Agency (Bareskrim) and was inaugurated by then-president Joko ‘’Jokowi’’ Widodo as the National Police chief on Jan. 27, 2021, becoming the longest-serving police chief in years.
During his tenure, the police force under Listyo has faced several high-profile cases that caused widespread public anger. These controversies included the recent wave of demonstrations, the Kanjuruhan Stadium tragedy in Malang, East Java, on Oct. 1, 2022, and an online gambling scandal allegedly backed by police officers. The latter also involved police general, Ferdy Sambo, who last served as head of the Professional and Security Division (Propam), notorious for his role in the murder of his aide-de-camp, Nofriansyah Yosua Hutabarat.
Despite these serious controversies, Listyo’s position has remained politically secure. He is viewed as instrumental in safeguarding the political status quo during last year’s presidential election. His lengthy tenure reflects Jokowi’s strategy to ensure the National Police remain under his influence even after leaving office in 2024, despite President Prabowo Subianto’s prerogative to replace Listyo at any time.
However, any decision by President Prabowo to remove Listyo would be perceived by the public as a move to distance himself from Jokowi’s camp, which played a significant role in securing his electoral victory. Prabowo would prefer to avoid such a step in the interest of maintaining political stability, even though Jokowi holds no direct control over a political party.
Deputy State Secretary Bambang Eko Suhariyanto emphasized the central role of the Police Reform Committee, a body the President was expected to announce soon after returning from his recent overseas trip, but which has yet to materialize despite his return.
This ad-hoc committee will consist of seven to nine members, one of whom is expected to be former coordinating political, legal and security affairs minister Mahfud MD. Although it has not yet been formally established, Bambang noted that coordination between the committee and the National Police’s internal reform team is already underway.
On the other hand, Listyo appears determined to hold onto his position as a way of “saving” the police institution in its current state of crisis. He appears to be attempting a restructuring of the police force by replacing the head of the Intelligence and Security Agency (Kabaintelkam) and the commander of the Mobile Brigade Corps (Brimob), two units widely regarded as responsible for the unrest and casualties during the recent demonstrations.
However, these changes were also necessary since the previous officials had reached retirement age. Beyond ensuring his full control over these two strategic units, the reshuffle is also seen by some as a power-consolidation maneuver by Listyo.
Furthermore, on Sept. 17 Listyo established the Police Reform Transformation Team, chaired by Police Education and Training Institute chief Comr. Gen. Chryshnanda Dwilaksana. The team consists of 52 officers, 47 senior officers and five mid-ranking officers.
Deputy House of Representatives Speaker Sufmi Dasco Ahmad said this internal police team was formed to prepare data required for the broader police reform agenda initiated by the President. He emphasized that there was no conflict between the two reform teams.
Nevertheless, skepticism has emerged. The chairman of the Indonesian Legal Aid Foundation (YLBHI), Muhamad Isnur, questioned the credibility of the current reform teams, whether formed by the police or by the President. According to him, the involvement of individuals closely tied to the police would not bring about fundamental change within the institution.
Such skepticism is understandable, given that the recommendations of the Joint Fact-Finding Team (TGPF) for the Kanjuruhan tragedy have yet to be fully implemented by the police, particularly with respect to transparency and thorough investigations into all those responsible.
Indeed, police reform has proven extremely difficult to realize. Even during the early Reform era, when the People’s Consultative Assembly Decree No. VII/2000 mandated that police officers retire or change status if they wished to serve outside the police force, the reality today shows otherwise, according to former chief of the Indonesian Military’s intelligence agency, Soleman B. Ponto. According to him, there are currently 4,351 active police officers serving outside the formal police structure.
It is therefore unsurprising that within the first 100 days of President Prabowo’s administration, the National Police ranked as the least trusted law enforcement institution, with a public trust level of just 71 percent, significantly behind the Attorney General’s Office (77 percent), the courts (73 percent) and the Corruption Eradication Commission (72 percent).
This data starkly illustrates the depth of public mistrust and makes the case for a change of guard even more pressing.
