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January 24, 2025 | 01:21 am
TEMPO.CO, Jakarta - Trade Minister Budi Santoso is confident that Indonesia's exports can increase by 7.1 percent in 2025. He stated that the percentage increase is far from the realization of exports in 2024, which was only 2.29 percent.
"It is indeed quite far to 7.1 percent, but we need to be sure. Why? Because we have to cooperate between the government and the private sector," said Budi Santoso at the launch of IFFINA 2025 at his office in Jakarta on Thursday, January 23, 2025.
Budi said the government can create policy instruments, support units, and set agreements with other countries. Meanwhile, according to Budi, the private sector has a similar instrument by becoming a partner of the Ministry of Trade to promote export products in foreign markets.
Budi said the potential global market size for furniture products reached US$770.42 billion in 2024. Meanwhile, in 2029, the potential global market is projected to increase to US$925.42 billion. Based on these data, he said that the Ministry of Trade is implementing three programs to increase Indonesia's export opportunities.
The first program is to work with marketers to increase the competitiveness of domestic products that have been sidelined by the flood of imported goods. He wants the products of micro, small, and medium enterprises (MSMEs) to be absorbed by the domestic market. "The second program is to expand the export market. We want to have an unlimited export market, which we have had so far. So we are pursuing several agreements that we are currently working on," Budi said. The bilateral agreements Budi was referring to were the Indonesia-European Union Comprehensive Economic Partnership Agreement (I-EU CEPA), Peru CEPA, and Eurasia CEPA.
The final program to increase exports is to prepare MSMEs to enter foreign markets. Budi Santoso claimed that the Ministry of Trade had provided training for MSMEs and appointed export instructors. "The export instructor's job is to train our MSMEs so that they understand about exporting. So far, sometimes people don't want to export because they are confused about the procedures," Budi elaborated.
Earlier, Budi Santoso revealed that 78 percent of national exports are currently still dominated by the manufacturing industry. He said that this situation is different from 15 years ago when around 70 percent of exports were raw materials.
The Central Statistical Office (BPS) noted that the national export performance throughout 2024 reached US$264.70 billion. Of this performance, US$196.54 billion, or 74.25 percent was contributed by the export performance of the non-oil and gas processing industry.
The export value of the non-oil and gas processing industry in 2024 increased by 5.33 percent compared to the previous year. With this performance, the non-oil and gas processing industry also plays a role in achieving a surplus value in Indonesia's trade balance of US$31.04 billion in 2024.
The non-oil and gas export performance in 2024 is supported by the export of manufactured products such as various chemical products and vehicles and their parts. The main destinations for Indonesia's non-oil and gas exports include China, the United States, and India.
Han Revandra contributed to this article.
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