- International trade plays an important role in the economy amidst the uncertainty of the global situation due to the prolonged Middle East conflict and the Russian-Ukrainian crisis as well as the disruption of world food production due to El Nino.
- The performance of international trade can be seen from various indicators, including the trade balance, the value of exports and imports, the concentration of exports and imports, the use of imported goods and the added value of traded goods.
- Indonesian trade in Semester 1-2024 was marked by a continuing trade balance surplus since 2020, strengthening terms-of-trade (comparison between the prices of exported and imported goods), decreased concentration of product types and countries of origin of imports, and increased contribution of processing industries to exports.
- However, decreasing surpluses, slowing exports and increasing concentration of export destination countries have placed Indonesia in a vulnerable position to global economic shocks.
- The manufacturing industry showed positive trade performance in Semester 1, although it then slowed slightly in July 2024.
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