Not a single human being in this world can live alone, and the same goes for countries. Each country has its own advantages and disadvantages, so that their existence complements each other. For example, Indonesia is rich in spices, but its youth lack exposure, so they are sent to Uncle Sam's country to be further empowered.
This is what encourages export activities, namely an activity -- as reported by Kompas.com -- in the form of sending merchandise abroad with the aim of obtaining reciprocity in the form of goods in demand that are needed by the country. Which, according to Gunawan Widjaja and Ahmad Yani in International Business Transactions (2000), is carried out to meet the needs of each country so that it can develop better.
Furthermore, citing the website of the Ministry of Finance, Directorate General of Customs and Excise, exports are carried out to control the price of export products so that they remain stable, of course by sending products with excess capacity. Considering the abundance of products can reduce the total price of the product, because it is very easy to obtain.
The long-term impact is positive economic growth in a country. Markets will continue to spread their wings. Boosting investment growth. Which indirectly continues to bring in foreign exchange for a country.
In addition, exporting not only functions to meet the needs of business people, but also supports the needs of individual consumers. Because consumers can get added value from a product that does not originate from the local or homeland. Through online goods transactions, of course.
Latest Achievements in Indonesian Exports
Based on a report from the Central Statistics Agency (BPS), Indonesia's export activities in June managed to reach 18.55 billion US dollars. An increase of 9.52 percent monthly, compared to May 2021. And an increase of 54.46 percent annually, comparing it with June 2020. According to the Head of BPS Margo Yuwono, the increase in export value was contributed by almost all sectors, including oil and gas exports or non-oil and gas.
It is proven that the value of non-oil and gas exports in June 2021 reached 17.31 billion US dollars or the equivalent of an increase of 8.45 percent (mtm) and 51.35 percent (yoy). If asked further why the value of non-oil and gas exports could increase, the reason is quite simple. First, iron and steel exports increased by 32.31 percent. Next there were vehicles which increased by 42.19 percent. Dairy seeds and metal ash rose 35.36 percent. Electrical machinery and equipment rose 15.87 percent. And footwear increased 33.01 percent.
The temporary value of exports this year (January-June 2021) reached 102.87 billion US dollars or the equivalent of an increase of 34.78 percent (yoy). This increase in value was in line with the value of non-oil and gas exports which reached 97.06 billion US dollars or the equivalent of an increase of 34.06 percent. This shows that non-oil and gas exports are the biggest factor in increasing the country's overall export value. In the agricultural sector, the export value in June 2021 also increased. Reaching 0.32 billion US dollars, which is equivalent to an increase of 33.04 percent (mtm) and 15.19 percent (yoy). Most of which is contributed monthly by aromatics, cocoa beans, cloves, coffee, spices, bird's nests and medicinal plants.
The growth in export value in the processing industry sector is no less interesting. It is reported that it has succeeded in reaching 14.08 billion US dollars or the equivalent of an increase of 7.34 percent (mtm) and 45.91 percent (yoy).
Not to be left behind is the mining sector whose export value reached 2.91 billion US dollars or the equivalent of an increase of 11.75 percent (mtm) and 92.80 percent (yoy). With coal, lignite, copper and other metal ores as the largest contributors to monthly export value.
The countries that are interested in Indonesian products in June are China, the United States (US), Japan, South Korea and the Philippines. Indonesia succeeded in encouraging the Bamboo Country to want to disburse its funds, whose share was reportedly 23.88 percent. By exporting goods worth 4.13 billion US dollars, consisting of mineral fuels, steel, iron, and vegetable animal fats and oils. Next is the US which had a share of 12.34 percent this June. The goods exported to Uncle Sam's country are clothing, accessories, knitwear, rubber or goods made from rubber, and footwear. Followed by Japan with a share of 7.87 percent or the equivalent of raising funds of 1.36 billion US dollars. With commodities in the form of metal ash, slag ore, electricity, machinery and equipment, as well as mineral fuels and others.
Additionally, based on the official website of the Central Statistics Agency, the largest export contributor in January-June 2021 was West Java with a value of 16.08 billion US dollars or the equivalent of an increase of 15.63 percent, followed by East Java with a value of 11.20 billion US dollars. or equivalent to an increase of 10.98 percent, and Riau with a value of 9.12 billion US dollars, which increased by 8.86 percent.
According to the Republika.co.id page, the total value of Indonesia's exports this June exceeded the export performance in April 2021 which reached 18.49 US dollars. Successfully broke a new record since August 2011, which reached 18.55 billion US dollars.
Showing Optimism
According to the Indonesian Minister of Trade Muhammad Lutfi, this increase in export value shows that Indonesia will gain many benefits in the future. The leading commodities in January-June 2021 will be the main weapons in trading in the following periods. Head of the Ministry of Agriculture's Public Relations and Information Bureau, Kuntoro Boga Andri, revealed that the Ministry of Agriculture's programs are in accordance with its routes and corridors. Starting from upstream to downstream, everything is maintained with a balance of interventions. Don't forget the cooperation of all parties in advancing Indonesian agriculture.
Evidently, the Farmer Exchange Rate (NTP) and Farmer Business Exchange Rate (NTUP) continued to increase from October 2020 to May 2021. The NTP in October 2020 was 102.25, next in November 2020 it reached 102.86, December 2020 103.25 , then January 2021 was 103.26, February 103.10, March 103.29, April 102.93 and May 2021 reached 103.29.
This also applies to NTUP, with October 2020 reaching 1002.42, then in November it reached 103.28, December 104.00, January 104.01, February 103.72, March 103.87, April 103.55 and May 2021 achieved the figure 104.04.
Coupled with improvements to the industrial structure that are currently being carried out by the government, it is believed that future export activities can increase the utilization of various industrial commodities and high-tech industries, such as steel, iron and automotive for example. Considering that the value of iron and steel exports in January-June 2021 increased by 92 percent yoy.
Additionally, this shows that Indonesia is evolving from a producer of raw goods and semi-finished goods to industrial commodities and high-tech industry, as stated by Trade Minister Lutfi.
Trade Minister Lutfi continued, export activities are planned to collaborate with the United Arab Emirates (UAE) in the future. By relying on exports of high-value products in the form of jewelry, the government hopes to embrace the UAE in international trade relations.