Performance of Non-Oil and Gas Manufacturing Exports and Imports in the First Half of 2024: Stability Amid Global Challenges

Jakarta, INTI - The non-oil and gas manufacturing industry in Indonesia continues to be one of the main driving forces of the national economy. In the first half of 2024, this sector showed stable performance, despite being under pressure from the dynamics of the challenging global economy. According to the latest data released by the Ministry of Industry, the export value of the non-oil and gas manufacturing sector reached US$ 91.65 billion from January to June 2024, marking a growth of 0.40% compared to the same period in 2023.

This increase demonstrates the resilience of Indonesia's non-oil and gas manufacturing sector amid global uncertainties. Although growth was modest, this achievement is encouraging considering the pressures from various external factors such as trade wars, commodity price fluctuations, and exchange rate volatility, which could affect the competitiveness of Indonesian products in international markets.

Meanwhile, imports in the non-oil and gas manufacturing sector during the same period decreased by 1.20%, with a total value of US$ 82.17 billion. This decline indicates efforts by industry players to reduce dependence on imported raw materials, which can help increase the competitiveness of domestic products. As a result, this sector recorded a trade surplus of US$ 9.48 billion, a positive signal for the national economy.

In June 2024, the export value of the non-oil and gas manufacturing industry was recorded at US$ 16.06 billion, experiencing a slight decrease of 1.44% compared to May 2024, which reached US$ 16.29 billion. This decline may be due to several factors, such as decreased demand from major export markets and logistical constraints that hindered the shipment of goods. However, when compared to the same month last year (year-on-year/y-on-y), export performance actually increased by 5.50%. This indicates that in the long term, the non-oil and gas manufacturing sector is still able to show a positive growth trend.

On the import side, the value of imports in the non-oil and gas manufacturing industry in June 2024 also experienced a significant decrease of 8.68% compared to May 2024, from US$ 14.96 billion to US$ 13.66 billion. This decrease reflects the efforts of the industry to adjust to market conditions, both in terms of domestic and global demand. However, if we compare it year-on-year, the import value in June 2024 actually increased by 0.86% compared to June 2023, indicating that despite the monthly decline, there is still an annual increase in import demand.

In terms of volume, the export volume of the non-oil and gas manufacturing industry in June 2024 was recorded at 11.62 million tons, an increase of 11.13% compared to May 2024, which reached 10.46 million tons. This increase in export volume indicates that even though the export value decreased, the quantity of goods shipped abroad actually increased. This could be due to several factors, such as a decrease in product prices in the international market or an increase in production efficiency domestically.

Meanwhile, the import volume was recorded to have decreased significantly by 15.20% from the previous month, reaching 8.71 million tons to 7.38 million tons in June 2024. This decline reflects the adjustments made by the industry in responding to changes in market conditions, both domestically and internationally.

These achievements provide a clear picture that the non-oil and gas manufacturing industry remains adaptable and even grows amid various global challenges. However, to maintain stability and drive further improvement in this sector's performance, joint efforts between the government and industry players are required. Innovations in the production process, efficiency improvements, and export market diversification are some strategic steps that need to be taken.

In this context, the government plays a crucial role in creating a conducive business climate, including providing adequate infrastructure, developing competent human resources, and supporting policies that enhance industrial competitiveness. On the other hand, industry players are also expected to continue increasing their competitiveness through innovation and product development that meets global market needs.

Data Sources: Ministry of Industry, Republic of Indonesia; Central Bureau of Statistics (BPS)