The figure is indeed small compared to 2022, when export growth reached 29.8 percent, but Hartarto said that the projection has been made with the assumption of an already high base value.
"We project that this year's export growth will slow down compared to last year because the base has increased," he informed in a press statement after attending a limited meeting on exports and investment chaired by President Joko Widodo (Jokowi).
According to Hartarto, imports are projected to increase by 14.9 percent in 2023 after growing 29.4 percent in 2022.
The minister later explained that the slowdown cannot be separated from observations of developments in the global economy, which has been projected to decline.
"Some economic growth will also improve, especially in China and Indonesia are also projected to be positive," he added.
Hartarto disclosed that Indonesia’s economy has been deemed resilient because the nation’s dependence on exports is relatively low, contributing less than 50 percent.
Indonesia's export contribution to economic growth is 45 percent, slightly lower than that of Japan (47 percent), but higher than that of Brazil (40 percent), China (39 percent), and the United States (28 percent).
At the same time, export dependence below 50 percent shows that Indonesia is included in the ranks of countries with a strong domestic market.
A slowdown has also been projected in Indonesia's trade growth, which reached 3.5 percent in 2022 and is estimated to be only 1 percent in 2023.
Hartarto said that the value of Indonesia's exports increased significantly to US$268 billion in 2022 on the back of at least three main supporting commodities—iron and steel, fossil energy, and crude palm oil (CPO), which posted a positive trade balance.
"Even coal can compensate for oil imports, so that our trade balance in the energy sector was positive by reaching US$6.8 billion year to date, iron and steel with US$29 billion, and CPO was around US$30 billion," he informed.
Meanwhile, in terms of exports, traditional countries still had the highest market share. As of November 2022, China contributed US$57.7 billion, followed by the United States with US$26.1 billion, India with US$21.6 billion, and Japan with US$21.1 billion.
Related news: Indonesia's trade balance projected to reach US$38.5 billion in 2023
Related news: Indonesia's trade balance posts US$5.16 bln surplus in Nov
Related news: Expect Kadin to prepare road maps for development: President
Translator: Gilang Galiartha, Resinta S
Editor: Sri Haryati
Copyright © ANTARA 2023
