Indonesia's Exports to India Surpass Japan's

The Central Bureau of Statistics (BPS) recorded that the value of exports in February 2017 reached US$12.57 billion. This figure decreased by 6.17 percent compared to the previous month, but increased by 11.16 percent compared to the same month in 2016. Cumulatively, the value of Indonesian exports in January-February 2017 reached US$25.98 billion, or an increase of 19.20 percent compared to the same period the previous year.

Currently, there is economic dynamism in Indonesia's main export destination countries, such as the slowdown of the Chinese economy, the economic-political turmoil in the United States (US), and the slowing purchasing power of the Japanese people. This has resulted in a shift in export destination countries. Throughout 2017, India displaced Japan in the top three non-oil and gas export destinations for Indonesia. The value of exports to India reached US$2.3 billion, exceeding exports to Japan, which only reached US$2.1 billion. Meanwhile, Indonesia's largest non-oil and gas export market remains China, with a value of US$2.9 billion. Indonesia's second largest export destination is the US, with a value of US$2.7 billion.

However, according to the Deputy for Distribution and Service Statistics at BPS, Sasmito Hadi Wibowo, this shift in Indonesia's export market cannot yet be considered permanent. The reason is that conditions in Japan are relatively stagnant while demand in India is surging. This means that if the Japanese economy improves and demand increases again, exports to Japan will return to the top three main export destination countries for Indonesia.