Indonesian Political, Business & Finance News

Trade Minister: Middle East Contributes 3.49 Percent of Total Exports

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Trade

Trade Minister Budi Santoso stated that Indonesia’s export performance continues to exhibit a positive trend despite the volatile global geopolitical situation, particularly due to conflicts in the Middle East region.

According to Budi, the tensions triggered by Israel’s and its ally, the United States’, attacks on Iran are indeed exerting pressure on global trade, including Indonesia. Additionally, the rising protectionist policies in various countries are posing challenges to the national export performance.

“In the midst of global uncertainty, our export performance is demonstrating quite strong resilience,” Budi said during the launch of the Campuspreneur Programme: Developing Export-Oriented Young Entrepreneurs, centred at Sebelas Maret University (UNS) in Solo, Central Java, on Thursday, 2 April 2026.

Based on data from the Central Statistics Agency at the beginning of April, Indonesia’s export value for January-February 2026 reached US$44.32 billion, an increase of 2.19 percent compared to the same period in 2025.

Budi assessed this achievement as a signal that global market opportunities for Indonesian products remain wide open. “Nevertheless, the government remains vigilant against the ongoing impacts of geopolitical conflicts, particularly on supply chain stability and market demand,” he said.

He revealed that the Middle East region currently contributes around 3.49 percent to Indonesia’s total exports, with a value of approximately US$9.87 billion. This figure is considered quite significant and needs to be protected from erosion due to conflict escalation.

In response to the situation, Budi said the Ministry of Trade is preparing several measures. One of the main focuses is accelerating export market diversification to reduce dependence on specific regions.

According to Budi, the diversification strategy is not new, but it is becoming increasingly relevant amid global crises that can rapidly alter the trade landscape. He cited the Covid-19 pandemic situation, which temporarily disrupted global supply chains and opened opportunities for other countries to fill market gaps.

In addition, the government is striving to optimise the various trade agreements that Indonesia already possesses. This step is expected to suppress tariff and non-tariff barriers, while enhancing the competitiveness of national products in international markets.

“When global disruptions occur, there are always new opportunities. The important thing is how we can move quickly to seize that momentum,” Budi said.

With a combination of market diversification strategies and optimisation of trade cooperation, the government is optimistic that Indonesia’s export performance can be maintained, even improved, amid the uncertain global dynamics.

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