JakartaPost-Jan 11, 2023
The government is seeking to diversify its export destinations for coal and palm oil this year amid fears of recession in advanced economies, but analysts question whether new markets could make up for diminishing demand. Trade Minister Zulkifli Hasan said Indonesia would look to expand its exports in Africa, South Asia and the Middle East. Coal and crude palm oil (CPO) are the country’s key export commodities, accounting for 18.77 percent and 12.14 percent of total exports from January to November of last year, according to Statistics Indonesia (BPS). Global economic recovery and a war between Russia and Ukraine resulted in strong demands for the key commodities, bringing the country trade surplus and strong economic growth throughout the year. “Trade deals are the toll roads to maintain export growth in times of hardship,” Trade Minister Zulkifli Hasan said in a 2023 outlook keynote speech recently. The government is expecting a decrease in exports as the world’s biggest economies, the United States, China and Europe are projected to head into a slowdown this year. International Monetary Fund Managing Director Kristalina Georgieva estimated that one-third of the world economy would be in recession. Zulkifli said Indonesia would rely on a comprehensive economic partnership agreement (CEPA) with countries, for example with South Korea and the United Arab Emirates (UAE). The Indonesian trade chief expects businesses not only to increase trade in goods and services with Seoul, but also better access to enter the South Korean market and partnership to enhance human capital, particularly in manufacturing, agriculture, forestry and marine resources. Data from the Trade Ministry shows that South Korea has eliminated 11,267 tariff posts under the deal, which equals 95.5 percent of total tariff, for Indonesian imports to 0 percent that includes bicycles, motorcycles, auto parts and textile products. Zulkifli said the CEPA deal with the UAE was currently waiting for ratification at the House of Representatives. Read more at: https://www.thejakartapost.com/business/2023/01/10/indonesia-eyes-new-markets-for-coal-palm-oil-as-global-recession-looms.html.
