VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Central Statistics Agency last Thursday released data on the Indonesia’s trade balance for March 2021, which showed an improvement in the value of exports and imports. The performance in March showed a strong increase with growth of 30.47 percent and 25.73 percent respectively on an annual basis (year-on-year). On a monthly basis, significant increases in exports and imports occurred in the oil and gas and non-oil and gas sectors when compared to February 2021.

On one hand, export performance in the first quarter of 2021 shows positive developments amid the recovery of demand, and is also supported by rising commodity prices. Signs of stronger economic recovery are also consistent with manufacturing activity in Indonesia's main trading partners, such as China, the United States and the European Union, which have expanded for 8 consecutive months. On the other hand, import performance will also experience an increase due to domestic demand starting to recover and the existence of a low-based effect last year.

The trade balance surplus is projected to continue throughout semester I / 2021. This was driven by the solid export performance of major export commodities, such as crude palm oil (CPO) and coal, as well as the global economic recovery. However, it should be noted, according to researchers, as it enters semester II / 2021, it is estimated that imports will soar along with the acceleration of economic growth by strengthening domestic consumption and increasing fixed capital investment activity. The growth in the trade balance, seen at least in February 2021, is expected to widen the current account deficit (CAD) in 2021 to -1 (minus one) percent of this year's Gross Domestic Product. Of course, this needs to be watched out for because it will affect the growing national economic growth. However, with the government’s efforts, the surplus that has been achieved in the first quarter is expected to continue the economic recovery in 2021.