Indonesia’s exports soar in May 2023, reaching US$21.72 billion, signaling robust growth and highlighting the country’s competitive edge in the global market
INDONESIA’S export industry is experiencing a significant boost, with the country’s export value reaching an impressive US$21.72 billion in May 2023. This figure represents a remarkable 12.61 percent increase compared to the previous month, highlighting the robust growth in Indonesia’s export sector. According to the BPS deputy for balance sheets and statistical analysis, Mohamad Edy Mahmud, this positive trend has been observed consistently in the past three years, demonstrating the resilience and potential of Indonesia’s exports.
In May 2023, non-oil and gas exports contributed substantially to the overall export growth, reaching an impressive value of US$20.40 billion. This represents a remarkable 13.18 percent increase compared to April 2023 and a 1.94 percent increase compared to May 2022. The data showcases the diversification and strength of Indonesia’s export portfolio, highlighting the country’s ability to compete on a global scale.
Despite a slight decrease in cumulative exports for January to May 2023 compared to the same period in 2022, the positive momentum in May indicates promising prospects for the remainder of the year. Non-oil and gas exports for the same period also witnessed a decline of 6.69 percent. However, with the recent surge in exports and the upward trajectory in the non-oil and gas sector, there is room for optimism and potential for a rebound in the coming months.
The automotive and parts sector emerged as a notable contributor to Indonesia’s export growth in May 2023. With a staggering increase of US$373.2 million or 60.20 percent, this industry demonstrated its resilience and competitiveness in the global market. On the other hand, the decline in mineral fuels exports by US$175.8 million or 4.39 percent signals a potential area for improvement and targeted efforts to address challenges faced by this sector.
The processing industry holds a significant share of Indonesia’s non-oil and gas exports, accounting for 70.54 percent of the total percentage. Although this sector experienced an 8.97 percent decline in exports during January–May 2023 compared to the same period in 2022, the positive growth in May suggests the potential for a rebound in the near future. Additionally, the agricultural, forestry, and fishery sectors experienced a slight decline of 3.95 percent, while mining and other products witnessed a positive growth of 1.36 percent, indicating a diversified export base.
China emerged as the largest destination for Indonesia’s exports in May 2023, with a value of US$4.78 billion. The United States and Japan followed closely, with export values of US$2.05 billion and US$1.77 billion, respectively. These three countries collectively accounted for an impressive 42.12 percent of Indonesia’s total export contribution. Furthermore, Indonesia’s exports to ASEAN and the European Union (27 countries) reached US$3.97 billion and US$1.56 billion, respectively, reflecting the country’s commitment to strengthening regional and international trade relations.
Looking at the provinces responsible for the majority of exports during January–May 2023, West Java led the way with a remarkable contribution of US$14.80 billion or 13.70 percent. East Kalimantan and East Java followed closely, with export values of US$12.83 billion (11.87 percent) and US$9.63 billion (8.91 percent), respectively. These provinces exemplify the regional diversity and economic potential across Indonesia, showcasing the collective efforts and capabilities of various regions in contributing to the country’s export success.
Overall, Indonesia’s export industry is experiencing a notable surge, with impressive growth in May 2023. The consistent increase in export value after the holiday period and the remarkable performance of the non-oil and gas sector highlight the resilience and competitiveness of Indonesia’s exports. With strategic efforts to address challenges in specific sectors and continued focus on diversification, Indonesia’s export industry holds immense potential for further growth and contribution to the country’s economic prosperity.