Indonesia's Export Performance Lags Behind in ASEAN

In the era of Industry 4.0, economic strength is crucial for a nation. Export performance is a key component of this strength. Unfortunately, Indonesia's export performance lags behind other Southeast Asian (ASEAN) countries. The ongoing trade war between the United States and China presents a challenge to the Indonesian government in preventing a further widening of the country's trade deficit, as experienced last year.

According to ASEAN Secretariat data, Indonesia's export value in 2018 was only 17.28% of its Gross Domestic Product (GDP). This figure is below the ASEAN average of 55.22% of GDP and places Indonesia last among the 10 member countries. Singapore had the highest export performance, at 113.16% of its GDP, followed by Vietnam at 100.8% of its GDP.

(Read Databoks: 5 Largest Destinations for Indonesia's Non-Oil and Gas Exports)

Based on BPS (Central Bureau of Statistics) data, Indonesia's export value in 2018 reached US$180 billion, while its GDP was Rp 14.837.4 trillion, equivalent to US$1.044 billion. Imports last year amounted to US$188 billion. This resulted in a trade deficit of US$8 billion.

(Read Databoks: Indonesia's 2018 Trade Deficit: The Worst in History)