House Member: Trade Deficit Must Prompt Evaluation to Strengthen National Export Competitiveness

Member of Commission VI of the Indonesian House of Representatives (DPR RI), Christiany Eugenia Paruntu, has stated that Indonesia’s trade balance deficit in May 2026 must become a momentum for evaluation to strengthen national export competitiveness while reducing dependence on imports, particularly in the oil and gas sector. According to her, this condition must be met with strategic measures so that the trade balance surplus trend can be maintained over the medium and long term. Christiany explained that, based on data from Statistics Indonesia (BPS), the trade balance deficit in May 2026 was primarily influenced by the still substantial oil and gas trade deficit. On the other hand, the non-oil and gas sector was still able to record a surplus, indicating that the foundation of national exports actually possesses resilience that needs continuous strengthening. “We need to view this deficit objectively. Its main cause stems from the high deficit in the oil and gas sector, while the non-oil and gas sector is still able to provide a surplus. This means the biggest challenge that must be addressed is how to strengthen export competitiveness while reducing dependence on energy imports,” Christiany said in a written statement on Saturday, 11 July 2026. She believes the government needs to accelerate industrial downstream processing so that Indonesian exports are increasingly dominated by high value-added products, not just raw commodities. Furthermore, export market diversification must also be continuously expanded so that national businesses are not overly dependent on traditional markets currently facing a global economic slowdown. Christiany also stressed the importance of strengthening the competitiveness of national industry through increased productivity, logistics efficiency, licensing ease, and optimisation of export financing for business actors, particularly MSMEs that have the potential to penetrate international markets. According to her, synergy between ministries, agencies, state-owned enterprises, and the business world is a crucial factor for Indonesian exports to grow more sustainably. “The steps that need to be continuously pushed are strengthening downstream processing, expanding export market access, improving supply chain efficiency, and providing stronger support to national exporters. Thus, Indonesian products will become more competitive in the global market and possess higher added value,” she explained. Furthermore, Christiany reminded that the sustainability of the trade balance surplus depends not only on export increases but also on the government’s ability to maintain a balance between productive import needs and increased domestic production capacity. Therefore, strengthening energy security, increasing investment in export-oriented manufacturing sectors, and developing import substitution industries must become a shared focus.