Identifying weak export areas
The slowdown in Indonesian export performance was largely caused by a significant dip in the manufacturing sector.
The agriculture sector plunged 25.48 percent year on year as demand for commodities such as coffee, spices, aromatics, and white pepper weakened.
“Weak demand for commodities in the manufacturing sector include palm oil, sports shoes, electrical appliances, and base metals. Whereas in mining it was coal, metal ore, lignite, and other mining export commodities,” said Suhariyanto.
The most significant drop in Indonesian exports month on month was in May at $382.5 million. Exports for metal and steel increased to $130.6 million.
Indonesia’s biggest exports went to China, the United States, and Japan respectively.
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Altogether, the three export destinations accounted for 41.82 percent of Indonesia’s total export in manufactured goods.
“Our export destinations have not changed because the changes take some time. Although the government has expanded our product diversification portfolio, Covid-19 has proven to be a tough challenge,” said Suhariyanto.
As a result of the pandemic, Indonesia’s economic performance for the first quarter this year grew a mere 2.97 percent.