Indonesia's Exports Slump in February 2024: What's the Cause?

The Central Statistics Agency (BPS) reported that Indonesia's export value reached US$19.3 billion in February 2024.

This figure decreased by 5.79% month-to-month (mtm) compared to January 2024's export value of US$20.49 billion. February 2024's achievement also plummeted by 9.45% year-on-year (yoy) from February 2023's US$21.32 billion.

The main cause of the decline in exports in February 2024 compared to January 2024 was the decrease in both non-oil and gas and oil and gas exports.

BPS explained that non-oil and gas exports were recorded at US$18.09 billion in February 2024. This figure decreased by 5.27% (mtm) from January 2024's US$19.09 billion. Year-on-year, the February 2024 non-oil and gas export figure also dropped by 10.15% (yoy) from US$20.13 billion in February 2023.

BPS stated that among the 10 commodities with the highest non-oil and gas export values in February 2024, the steepest decline compared to January 2024 occurred in iron and steel, which decreased by US$622.5 million (27.08%). The largest increase was seen in metal ores, slag, and ash, at US$223.5 million (34.0%).

Meanwhile, the value of oil and gas exports was recorded at US$1.21 billion in February 2024, down 12.93% (mtm) from US$1.39 billion in January 2024. However, the February value increased by 2.56% (yoy) from US$1.18 billion in February 2023.

BPS explained that the decrease in oil and gas exports from February to January 2024 was due to a 39.08% decrease in gas exports to US$504.7 million. Conversely, crude oil exports increased by 25.09% to US$196.7 million, and oil product exports increased by 25.15% to US$515.5 million.

Cumulatively, Indonesia's exports from January to February 2024 totaled US$39.8 billion. This figure is down 8.81% (cumulative-to-cumulative/ctc) from US$43.64 billion in January-February 2023.

The three provinces that contributed significantly to national exports in January-February 2024 were West Java at US$5.95 billion (14.95%), East Kalimantan at US$4.16 billion (10.47%), and East Java at US$3.79 billion (9.55%).

"These three provinces contributed up to 34.97% of total national exports," wrote BPS in its report released on Friday, March 15, 2024.