Aditya Suharmoko, Jakarta – Indonesia's exports were down nearly 15 percent last year as the global economic crisis cast a shadow over the country's major export earners, dampening demand.
The Central Statistics Agency (BPS) reported Monday that the country's exports dropped 14.98 percent last year to US$116.49 billion in 2009 from $137.02 billion in the previous year.
During 2009, non-oil and gas exports totaled only $97.47 billion, declining 9.66 percent from the previous year, the BPS reported.
However, the decline in exports was within the government's projected contraction in exports of between 10 and 15 percent. The government expects exports to rebound this year by 5 percent, said Trade Minister Mari Elka Pangestu in early January.
Meanwhile, imports in 2009 also dropped, and fell even more than exports as factories stopped purchasing raw materials amid sluggish demand in the world market. Despite the decline in foreign trade, the government estimated that Indonesia's economy would grow by 4.3 percent in 2009. The BPS will announce the official growth figure on Feb. 10.
On a monthly basis though, total exports rose 49.82 percent to $13.33 billion in December, compared to the same month in the previous year. Non-oil and gas exports reached $10.83 billion, or a 44.55 percent increase.
Last year, Indonesia mostly exported industrial products, which accounted for 63.03 percent of all products shipped abroad. The rest were mining products (16.89 percent of total exports), oil and gas products (16.33 percent) and agricultural products (3.75 percent).
The composition of exports was almost unchanged from 2008. Japan was Indonesia's main destination for exports in 2009. Japan bought $11.98 billion of Indonesian products, or 12.29 percent of total exports, according to the BPS.
Meanwhile, the US was ranked in the second position, purchasing $10.46 billion of Indonesian goods (10.73 percent of total exports), and China was in third position, with $8.91 billion of goods (9.14 percent).
Imports last year reached $98.86 billion, a 25.03 percent decrease from 2008, the BPS said. Non-oil-and-gas imports stood at $77.87 billion, falling 21.06 percent from the previous year.
Imported goods were mostly raw materials, 71.92 percent of total imports. Capital goods were 21.11 percent of total imports and consumer goods only 6.97 percent.
Indonesia mostly imported machinery (18.79 percent of total imports), electrical equipment (14.52 percent) and steel products (5.6 percent).
Even before the free trade agreement between ASEAN countries and China (ACFTA), Chinese imports were predominant last year, reaching $13.5 billion (17.33 percent of total imports), the BPS reported.
Indonesia also imported many products from Japan, with $9.82 billion (12.61 percent) of total imports, and Singapore, with $9.24 billion (11.86 percent).
Citi analyst Johanna Chua said December saw the trade surplus widen further to $3 billion from $1.9 billion in November. "We expect the trade surplus to gradually narrow as domestic demand continues to pick up," she said.
Businesses and analysts predicted Chinese products could flood Indonesia after the ACFTA was introduced on Jan. 1.
The government has said it would help industries to compete against cheaper Chinese products by providing incentives, if needed.