Jakarta: The Government is optimistic that trade value between Indonesia and the US can reach US$60 billion in 2024. The United States is Indonesia's third largest trade partner after China and Japan.
Based on data from the Trade Ministry, trade value between Indonesia and the US reached USD29.6 billion in 2018. It increased by 10.42 percent compared to the same period last year.
Moreover, foreign direct investment (FDI) from the United States to Indonesia reached 1.2 billion last year. There were around 572 US-funded projects.
"The data don't reflect potentials of bilateral economic cooperation between the two countries," Deputy for Macroeconomics and Finance at the Coordinating Ministry for Economic Affairs Iskandar Simorangkir said in a press release issued on Wednesday, November 4, 2019.
"Therefore, in order to boost trade cooperation, we need to focus on collaborative actions," he added.
Indonesia amassed a USD0.16 billion trade surplus in October 2019. It reversed the previous USD0.16 billion deficit recorded the month earlier. The surplus was primarily supported by a larger non-oil and gas trade surplus on the back of a shallower -2.48 percent (yoy) non-oil and gas export contraction compared to -2.70 percent (yoy) in September 2019, despite the flagging global economy.
Meanwhile, a faster oil and gas import gain compared with oil and gas exports fed through to a larger oil and gas trade deficit. Cumulatively, as of October 2019, however, the oil and gas trade deficit has improved to USD7.27 billion from USD10.82 billion in the same period of 2018 in line with declining non-oil and gas imports thanks to the support of import substitution policy.