Amid positive expectation in the increase of Indonesia’s exports figure, there is one big issue to be resolved: sea freight availability.
Hiro Handelaar Director Eva Fauzia said to press she is glad her company is among those that may be able to consistently help clients to delivers their exports in time.
“Here in Hiro Handelaar we have good networking with our stakeholders including shipping companies. That really helps our clients delivers their exports without any significant hassle,” Eva said.
“Don’t ruin your business. Call us. We have options to your solution,” she added.
Eva commented to the facts that Indonesia was experiencing an export import surplus in 2020.
December last year, the government said it released a shipment of exports worth US$1.64 billion by 133 large and small businesses to seek alternative markets and to revive Indonesian trade, which has slowed during the COVID-19 crisis.
While 79 large businesses accounted for the overwhelming majority of the exports, 54 small and medium enterprises (SMEs) contributed $12.3 million.
“One of the keys to improving the national economy is by boosting exports, which not only helps businesses to grow and create jobs, but also generates foreign exchange [forex] reserves to reduce our current account deficit,” President Joko “Jokowi” Widodo said at a virtual press conference on Dec. 4.
However, the World Trade Organization (WTO) has forecast that global trade will shrink between 13 percent and 32 percent this year as an impact of the COVID-19 pandemic.
The global slowdown during the pandemic “has led to a downturn in export markets”, said Jokowi. “But we have to see more clearly the opportunity of export markets that are still wide open in countries that are also fighting the pandemic right now,” he said.
Association: We face delay issues
Indonesia has also been pursuing stronger economic ties to spur trade with nontraditional partners, including Latin American and Middle Eastern countries.
Early December last year exports were shipped to almost all continents, including destinations such as China, Australia, the United Kingdom, the United States, Mexico, Ghana and Egypt.
Trade Minister Agus Suparmanto said that one of the first-time exporters whose products were among the shipment was a cigar company. Seven SMEs were also first-time exporters of products that ranged from processed foods to candlenut products, shrimp products and cloves, and from to cow mattresses to nipa palm sticks.
In addition, seven large businesses and 11 SMEs diversified their products to contribute exports such as soap noodles and knockdown furniture.
Non-oil and gas exports increased 3.54 percent mtm to $13.76 billion in October from September, but the figure represented a 1.84 percent yoy decline from October 2019.
Indonesian Exporters Association (GPEI) chairman Benny Soetrisno said that while he was expecting a rebound in exports next year, exporters were currently facing delays due to issues in sea freight and container availability. He added that the 2021 export rebound was not expected to match pre-pandemic levels, since the sector’s recovery would hinge on COVID-19 mitigation and control in destination countries.
The National Statistic data shows that exports declined 5.58 percent yoy to $131.54 billion in the first 10 months of the year, while imports fell 19.07 percent to $114.47 billion.