CORE: Export growth to US a positive signal for Indonesian product competitiveness
Jakarta (ANTARA) - Yusuf Rendy Manilet, an economist at the Center of Reform on Economics (CORE) Indonesia, views the growth of Indonesian exports to the United States as a positive signal that domestic products still hold competitiveness in the global market.
“Exports to the United States, which continue to grow, are a positive signal that Indonesian products, particularly manufactures and nickel-based processed goods, remain competitive,” Yusuf told ANTARA in Jakarta on Monday.
However, he cautioned that this competitiveness needs to be continuously strengthened so that it does not rely solely on price advantages.
According to him, improvements in quality, innovation and product diversification are important factors in sustaining Indonesian exports.
Yusuf assessed that shifts in global trade policy, including the potential rise of protectionism, pose risks that the Indonesian government and industry players must take into account.
He said strengthening domestic industrial capacity is necessary so that Indonesian export products carry higher added value and can withstand changes in international trade rules.
According to data from Statistics Indonesia (BPS), the United States was one of the main destinations for Indonesia’s non-oil and gas exports in January–June 2026, with a value of US$15.82 billion, contributing 11.76 per cent of total non-oil and gas exports.
The value of Indonesia’s non-oil and gas exports to the US in the first half rose by US$1.04 billion, or 7.06 per cent, compared with the same period a year earlier.
The main products underpinning Indonesian exports to the US included machinery and electrical equipment and their parts, worth US$2.50 billion; footwear, worth US$1.42 billion; and knitted garments and accessories, worth US$1.37 billion.
Meanwhile, China remained Indonesia’s largest non-oil and gas export destination in January–June 2026, with a value of US$34.56 billion, or 25.68 per cent of total non-oil and gas exports. The main export commodities included iron and steel, nickel and goods derived from it, and mineral fuels.
The growth in exports to the US came amid uncertainty over that country’s trade policy.
The US government, through the United States Trade Representative (USTR), imposed an additional 10 per cent tariff on Indonesian products following a Section 301 investigation related to a ban on goods made using forced labour.
Indonesia was among the group of countries subject to the additional tariff.
The Indonesian government is currently awaiting the outcome of a follow-up USTR investigation into the issue of excess production capacity.