The decline in global commodity prices has had an impact on Indonesia’s economic performance. This condition suppresses the country’s economic growth in terms of trade in the third quarter of 2023.
The Central Statistics Agency (BPS) recorded that economic growth was below 5% or 4.94% on an annual basis in the third quarter of 2023, this figure was lower than the previous quarter’s 5.17% (yoy). This weakening is reflected in Indonesia’s trade performance.
Acting Head of BPS Amalia Adiningrat Widyasanti said that both exports and imports experienced a contraction in the third quarter of 2023. From BPS records, exports contracted by 4.26% and imports also contracted by 6.18%.
“Exports contracted in exports of non-oil and gas goods such as mineral fuels, vegetable fats and animal oils and electrical equipment machines and exports of oil and gas goods, i.e. natural gas and oil products,” said Amalia, in an official BPS release, Monday (6/11/2023) .
Amalia revealed that coal prices had decreased by 5.25% and CPO by 6.29% on an annual basis (yoy). Meanwhile, BPS also recorded a decline in coal exports throughout the third quarter of 2023 by 47.32% (yoy) and CPO exports by 27.15% (yoy).
Even though export performance and commodity prices have decreased, Amalia emphasized that Indonesia’s trade balance performance remains good.
The proof is that Indonesia’s trade balance has successfully recorded a surplus for 41 consecutive months. Although, the surplus in the third quarter of 2023 is lower than in the same period last year.