The Ministry of Finance (MoF) has revealed that the Indonesian economy is starting to feel the impact of declining commodity prices and global economic slowdown. This is evident from a significant decrease in the value of Indonesia's exports.

According to data from the Central Statistics Agency (BPS), Indonesia's export value in August 2023 reached 22 billion US dollars. This figure represents a 21.21 percent decrease compared to the same period last year (year on year/yoy).

Cumulatively, Indonesia's export value from the beginning of the year until August amounted to 171.52 billion US dollars. This figure also experienced a 14.77 percent decline year on year.

"The impact of declining commodity prices and global economic slowdown, especially from Indonesia's main trading partner countries, is starting to be felt, particularly in trade performance," said Febrio Nathan Kacaribu, Head of Fiscal Policy Agency at the Ministry of Finance, in his statement on Monday (18/9/2023).

Febrio also stated that the decline in export performance is also experienced by other countries around the world, such as India and China. Additionally, neighboring countries like Vietnam, Malaysia, and Thailand have also experienced export contractions.

This indicates that the global economic slowdown has a widespread impact. Despite the moderated export value, Indonesia's export volume continues to increase. There is still strong demand for Indonesia's flagship products, with a non-oil and gas export volume growth of 9.5 percent in the January-August 2023 period.

Febrio believes that Indonesia's export-import performance will still have a positive trend in the future, as indicated by the continued trade surplus. However, the slowdown is inevitable due to the moderation of commodity prices and global economic growth.

"The government will continue to take anticipatory measures by promoting downstreaming of natural resources, enhancing the competitiveness of national export products, and diversifying main trading partners," he added.

What is your opinion on this topic? Share your opinion with us. Don't forget to follow Digivestasi's Instagram, TikTok, and Youtube accounts to stay updated with the latest information about economics, finance, digital technology, and digital asset investment.