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National Export Performance Is Still Supported By The Manufacturing Sector, Despite A Surplus
Saturday, 18 Jan 2025
The manufacturing sector continues to be the largest contributor to national export value. In 2024, the export performance of the non-oil and gas processing industry reached USD 196.54 billion, accounting for 74.25 percent of the total national export value of USD 264.70 billion.
"This means that our manufacturing sector consistently remains the top contributor to Indonesia's export performance. Even amid uncertain global economic and political conditions, national industry players are still actively entering export markets in various countries," said Minister of Industry Agus Gumiwang Kartasasmita in an official statement in Jakarta on Thursday (January 16).
According to data from the Central Statistics Agency (BPS), the export value of the non-oil and gas processing industry in 2024 increased by 5.33 percent compared to 2023. With this positive performance, the non-oil and gas processing industry also contributed to a trade surplus of USD 31.04 billion for Indonesia in 2024. "I believe that exporting is not just about selling products, but also about building a good reputation and image for Indonesian industry," Agus stated.
The Minister emphasized that the government is committed to creating a conducive business climate so that industry players in Indonesia are more enthusiastic about their operations. Additionally, through business-friendly regulations, it is believed that investment can be attracted to make Indonesia a production hub and a base for exports.
"Boosting exports is key to building our economy. In this regard, downstream processing plays a crucial role in achieving this goal by increasing the added value of domestic raw materials. Moreover, the government is focusing on enhancing added value for several raw material commodities," he explained.
Kemenperin will continue to implement its industrial downstreaming program, focusing on upstream industries such as agro, basic metals, non-metallic minerals, as well as oil and coal industries.
Therefore, the Minister of Industry appreciates industry players who are increasingly active in optimizing their productivity to meet domestic and export market needs. "However, this effort needs to be supported by strategic policies, such as ensuring a steady supply of raw materials and obtaining competitive industrial gas prices," he added.
According to BPS data, the positive performance of non-oil and gas exports in 2024 is supported by the export of manufactured products, including 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.
To enhance export product diversification, Kemenperin continues to promote high-complexity or high-value-added export products, such as those derived from nickel downstreaming. "Newly exported products with high complexity mainly include basic metals from nickel downstreaming, like stainless steel ingots and CRC, as well as motorcycles. Additionally, there are new low-complexity products like aluminum oxide and CPO derivatives," Agus stated.
Kemenperin is also developing industries based on commodities expected to become Indonesia's export champions in the future, including agro-based products like cocoa, coconut, and porang.
Furthermore, downstreaming in basic metal and non-metallic mineral industries is being pursued, such as silica sand for semiconductor industry raw materials. In the oil and coal sectors, downstreaming potential exists in olefins, aromatics, methanol, dimethyl ether, and single fertilizers based on nitrogen, phosphate, and potassium.
