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SCI: Global recession affects Indonesia as exports drop

Tempo - January 23, 2023

Ade Ridwan Yandwiputra, Jakarta – Consulting firm Supply Chain Indonesia (SCI) said that the economic slowdown and the threat of a global recession have slowly affected Indonesia.

One of the indications is the decline in exports in the fourth quarter of 2022 following lower demand from a number of countries that had suffered from the recession.

SCI chairman Setijadi said that based on data from Statistics Indonesia (BPS), after experiencing its highest value in August 2022 of US$27.86 billion, Indonesia's export value plummeted in the following four months until December to US$23.83 billion.

"The export value has then increased again. The export value in December was US$19.94 billion," said Setijadi in a press statement, on Monday, January 23, 2023.

Setijadi asserted that the threat of global recession and inflation, which would reduce people's purchasing power and put pressure on the national economy, must be anticipated by developing the supply chain of national goods and commodities.

"Development and strengthening of the supply chain must be carried out synergistically, both between ministries or agencies and between the central government and regional governments," Setijadi stated.

"Mapping the end-to-end supply chain of a commodity must be completed, equipped with the appropriate design of a logistics system," Setijadi added.

Collaboration and synergy, Setijadi added, are also necessary between logistics service providers and users, such as manufacturing companies and retailers, as well as logistics infrastructure operators, such as ports and airports "to ensure the smooth process of distributing goods and commodities."

Source: https://en.tempo.co/read/1682893/sci-global-recession-affects-indonesia-as-exports-dro