Indonesia sees raw material exports rise to record level in 2021
Boom due to coal, palm oil, tin, steel and rubber
Indonesian exports could reach between $ 225 billion and $ 230 billion this year, the highest in the history of Southeast Asia's largest economy, the country's trade minister said Thursday.
The resource-rich country is experiencing an export boom due to rising prices for its most important raw materials such as coal, palm oil, tin, steel and rubber.
Exports reached $ 209.2 billion for the first 11 months of the year, up nearly 43% year-over-year, with shipments hitting a monthly record of $ 22.84 billion in November.
"If the numbers stay steady in December, we will see exports valued at $ 225 billion to $ 230 billion, and in 2021 this will be the highest value in our export history," Minister Muhammad Lutfi said at a press conference.
The previous Indonesian export record was $ 203.5 billion in 2011, at the height of the previous commodity boom.
"Our surplus has reached $ 34 billion ... If this continues we will have a surplus of $ 35 billion in 2021," added Lutfi.
This forecast is the largest trade surplus since 2007.
Due to the sizeable surplus in goods trade, Indonesia could see its first current account surplus in a decade this year, according to the Central bank, which gives a forecast range of 0.3% surplus to 0.5% deficit, based on the gross domestic product.
According to analysts, this could help stabilize the rupiah currency amid global monetary tightening.