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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.
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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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The Marine Affairs and Fisheries Ministry (KKP) is encouraging increased production of export-quality anchovies on Pasaran Island, Bandar Lampung City, Lampung Province to support the fisheries industry and boost the local economy. Marine Affairs and Fisheries Deputy Minister Didit Herdiawan stated in Jakarta on Dec. 29, 2024, that the effort is done by empowering women in the area so they have the ability to create quality anchovy products.
"As one of the best anchovy producers in Indonesia, processed products for export can be an additional source of income for fishing families [in Pasaran Island]," said Didit after meeting Pasaran Island residents.
He added that women's empowerment element of the initiative is done in collaboration with the Women's Empowerment and Child Protection (PPPA) Ministry to improve business capabilities and diversify products based on local wisdom.
"It is very important to improvef women's ability to produce value-added products while increasing household income," Didit said.
He also appealed for the facilities and infrastructure that have been built by the KKP on Pasaran Island, which has been designated as a modern fishing village (Kalamo), to be utilized to increase income and added value.
"Good management can certainly minimize [the impact of when] fish supply is low so [the fishers] do not lose their market," Didit noted
Meanwhile, KKP Marine and Fisheries Products Competitiveness Improvement (PDSPKP) Director-General Budi Sulistiyo explained the results from the monitoring and evaluation of the 21 members of the fisheries cooperative on Pasaran Island. He said that the average production volume of anchovy processing in the area is two to five tons per month, while their monthly revenue reached Rp20-50 million.
The workforce employed by a processing business unit is around 10 to 20 people, which are divided into workers in sorting and cleaning, drying, as well as packaging duties. Currently, the anchovy products' marketing targets are largely the Jakarta and Lampung regions.
"We continue to monitor developments here after it has been inaugurated as a Kalamo. Of course this is part of the state's attention towards coastal communities. We encourage cooperatives to be more innovative in opening up market opportunities, both domestically and abroad," said Budi.
During his work visit to Lampung, Deputy Minister Didit also took the time to visit the Lampung Marine and Fisheries Product Quality Control and Supervision Agency (BPPMHKP). In one of the KKP technical service units (UPT), he gave direction for all KKP units to improve public services and collaborate between work units to provide quick solutions to the local community as part of efforts to accelerate the realization of food self-sufficiency in Indonesia
The Kalamo initiative is part of KKP Minister Wahyu Trenggono's blue economy program, which aims to increase the productivity of fishing communities through the provision of various fisheries infrastructure by the KKP. Apart from Pasaran Island, Kalamo has also been built in Biak Island, Biak Numfor Regency, Papua Province.
