Commodity Prices Lift Export Performance

The head of the central statistics bureau (BPS) Suhariyanto stated that Indonesia's overall export performance this year is better compared to 2016. The main driving factor is an increase in the price of various commodities, such as coal.

BPS recorded Indonesia's export value as of November 2017 at US$ 15.28 billion or a 0.26% increase compared to October 2017. Cumulatively, RI's total export from January-November 2017 reached US$ 153.90 billion or a 17.75% growth (year on year).

Furthermore, the value of imports in November was US$ 15.15 billion or a 6.42% increase (month to month/mtm). Cumulatively, the value of imports from January-November 2017 reached US$141.88 billion or a 15.47% increase.

Thus, the balance of RI's trade value in November 2017 recorded a surplus of US$ 0.13 billion. In the meantime, the trade balance from January- November 2017 recorded a surplus of US$12.01 billion or larger compared to the same period the previous year at US$9.53 billion.

He disclosed that the growth in non-oil/gas export value in November 2017 included vegetable fats and oils at 8.04%, iron and steel at 29.97%, knitted goods at 74.70%, and footwear at 11.34%.

`That is why we are optimistic that exports will contribute to the economic growth in quarter IV/2017, like in quarter III/2017,` he explained.

Head of the Centre for Trade Research and Development (BP3) at the Ministry of Trade Kasan Muhri
stated that an increase in commodity prices is still a supporter of the national trade performance until November 2017.

That condition will occur until the end of this year. `The crude oil price, which has risen, will certainly boost the increase in non-oil commodity prices in the international market, hence it will influence RI's export performance in December 2017,` he said when contacted by Bisnis.

In the meantime, the General Chairperson of the Indonesian Employers Association (Apindo) Hariyadi B. Sukamdani believes that there was an increase in the price of commodities such as coal and palm oil, which had an impact on this year's exports. However, from the manufacturing export side, the increase was more driven by volume growth.