Entering the Top Priority Ranks: Indonesia's Export Trends to Japan Over the Last 5 Years

The Central Statistics Agency (BPS) states that Japan is one of the main export destinations for Indonesia. The export value is quite substantial, exceeding US$13 billion per year, at least over the past five years.

According to BPS data, in 2018, Indonesia's exports to Japan reached US$19.47 billion. This contributed 10.81% to the total exports that year.

"The largest export values were to China, Japan, and the United States (US). Exports to these three countries reached 36.13% of total exports," wrote BPS in its 2018 export report.

Unfortunately, in 2019, the value dropped to US$16 billion or 9.54% of total exports. Nevertheless, Japan remained among the top export destinations along with China and the US.

Entering 2020, the value dropped further to US$13.66 billion or 8.37% of total exports. This lowest value in the last five years was due to mobility restrictions caused by the Covid-19 pandemic.

"Large-scale social restriction policies in our country and lockdown policies in other countries caused international trade activity to slow down," said BPS in its 2019 export report.

However, a year later, the international economy gradually recovered. Exports to Japan in 2021 increased to US$17.87 billion. This figure contributed 7.72% to Indonesia's total exports that year, which amounted to US$231.61 billion.

The latest annual export data in 2022 shows exports to Japan reached US$24.85 billion. This figure jumped significantly by 39.06% from 2021.

BPS stated that Japan remained a major export destination that year, along with China, the US, India, and Malaysia, contributing 54.01% to the total exports of 2022.

Cumulatively, the export value in 2022 reached US$291.90 billion, or a 26.03% increase from 2021. This is a very good performance.

"In fact, Indonesia's 2022 exports were the highest in history," said BPS.

The increase in export value, according to BPS, was contributed by several factors. Among them are the global economy recovering from the Covid-19 pandemic and the war between Russia and Ukraine.

"One of the impacts of this conflict was the increase in the price of commodities such as coal and palm oil, which are Indonesia's main export commodities. The increase in the prices of these commodities was triggered by disruptions in supply due to the war and the recovery period from the Covid-19 pandemic," BPS explained.

High commodity prices boosted Indonesia's export value. BPS stated that the strengthening export performance was also inseparable from the increase in international market demand.

(Also read: [Indonesia's Trade Balance Records 41 Consecutive Months of Surplus Until September 2023](https://databoks.katadata.co.id/datapublish/2023/10/17/neraca-perdagangan-ri-cetak-surplus-41-bulan-nonstop-hingga-september-2023))