{
    "success": true,
    "data": {
        "id": 1838163,
        "msgid": "indef-suggests-strategies-to-boost-exports-from-manufacturing-sector-1783054464",
        "date": "2026-07-03 11:18:06",
        "title": "INDEF suggests strategies to boost exports from manufacturing sector",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Trade",
        "summary": "The Institute for Development of Economics and Finance (INDEF) has urged the government to accelerate exports of high-value-added manufactured goods following Indonesia's first trade deficit in May 2026. The think tank highlighted the economy's vulnerability due to heavy reliance on primary commodities and oil and gas imports. It recommended diversifying products and expanding into non-traditional markets such as India, the Middle East, and Africa.",
        "content": "<p>The Head of INDEF\u2019s Macroeconomics and Finance Centre, M Rizal\nTaufikurahman, stated that the government needs to accelerate exports in\nsectors with high added value, particularly manufactured products, as a\nstrategy to drive national export growth. \u201cFor the remainder of this\nyear, the strategy to boost exports is not sufficient with just trade\npromotion. The government needs to accelerate exports in sectors with\nhigh added value, especially manufactured products, processed foods,\nchemicals, pharmaceuticals, automotive components, value-added textiles,\nand downstream products that do not stop at semi-finished goods,\u201d Rizal\nsaid in Jakarta on Friday. He argued that the trade balance deficit in\nMay 2026, which occurred for the first time, signals that national\nexports are weakening amid rising domestic demand for imports,\nparticularly oil and gas and raw materials. He also said this deficit\ndemonstrates Indonesia\u2019s trade vulnerability due to its still-large\ndependence on oil and gas imports, causing the trade balance to come\nunder immediate pressure when energy prices and import volumes rise.\nFurthermore, he observed that Indonesia\u2019s exports still rely too heavily\non primary commodities and natural resource downstreaming, making them\nsusceptible to weakening global commodity prices, slowing global demand,\nand pressure from major trading partner countries. In this sector,\nstrengthening the downstream processing of raw materials into\nsemi-finished or finished goods before export, such as metal-based\nproducts, palm oil, and agricultural products, can generate greater\nforeign exchange. He also suggested that Indonesia boost exports in\nterms of volume and consider product diversification as well as\nexpansion into non-traditional markets. \u201cExports must be driven by\nvolume, product diversification, and expansion into non-traditional\nmarkets such as India, the Middle East, Africa, and Latin America,\u201d he\nadvised. In the short term, Rizal also recommended that the government\nsimplify bureaucracy to strengthen export financing, accelerate tax\nrestitution, reduce port logistics barriers, improve certainty of\nindustrial raw material supply, and maintain exchange rate stability so\nthat exporters do not face excessively high cost risks. At the same\ntime, oil and gas imports need to be reduced through energy efficiency,\ndomestic energy substitution, and controlling unproductive consumptive\nimports. Data from Statistics Indonesia (BPS) shows that in May 2026,\nIndonesia\u2019s trade balance recorded a deficit of 1.61 billion US dollars,\nsurging 59 percent compared to the same period the previous year. A\nsurge in imports driven by rising global oil and gas prices was the main\ncause of this deficit gap.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indef-suggests-strategies-to-boost-exports-from-manufacturing-sector-1783054464",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}