I remember our trade balance with China in 2012 was a deficit of US$7.7 billion. In 2021, our trade balance was a deficit of US$2.4 billion because we were able to export steel. This year, I ensured we would have a surplus with ChinaJakarta (ANTARA) - President Joko Widodo (Jokowi) ensures that the trade balance between Indonesia and China will be in surplus in 2022.
The increase cannot be separated from the government's policy of implementing industrial downstreaming, especially for mining commodities.
Industrial downstreaming was able to boost exports and encourage the improvement of trade balance, Jokowi noted.
"I remember our trade balance with China in 2012 was a deficit of US$7.7 billion. In 2021, our trade balance was a deficit of US$2.4 billion because we were able to export steel. This year, I ensured we would have a surplus with China," Jokowi noted in his remarks at the Indonesian Chamber of Commerce and Industry (KADIN) leaders' briefing here, Tuesday.
For instance, the results of the policy to stop exporting raw nickel has led to a leap in trade value for Indonesia, he stated.
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According to the president, some five to seven years ago, nickel exports were only valued at US$1.1 billion, or around Rp16 trillion. That figure jumped to US$28 billion, or around Rp306 trillion, in 2021.
"In the end, this nickel (export value) will be around US$35-40 billion, as the derivatives have not been completed," he remarked.
In fact, the head of state recalled that the first time he had implemented the policy to stop exporting raw nickel, he received several complaints, including from KADIN, which stated that Indonesia was not ready with such a policy.
Hence, with the success that was demonstrated, the head of state invited the ranks of KADIN to play an active role in encouraging the downstreaming of the mining industry.
"Please implement this for other raw materials and not only a nickel. If you cannot stand alone, find a partner to join your business. Please ask the head of KADIN, every day, there are people coming from Korea, Japan, China, and Europe showing enthusiasm to invest in Indonesia," Jokowi remarked.
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The president believes that in the end, entrepreneurs from these countries will have no choice but to bring their industries to Indonesia. KADIN members should be able to capitalize on this by playing a more active role.
"Join with them because we really need technology. We also need investment, so that there is capital inflow. Things such as this must be done," Jokowi emphasized.
Despite the president having ensured a trade balance surplus between Indonesia and China in 2022, the latest report from Statistics Indonesia (BPS) indicated that Indonesia was still experiencing a deficit.
The latest BPS data states that the Indonesia-China export value during the January-July 2022 period had reached US$34.13 billion, while imports amounted to US$38.27 billion, or a deficit of US$4.14 billion.
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Translator: Gilang Galiartha, Resinta S
Editor: Fardah Assegaf
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