Jakarta: Trade Minister Enggartiasto Lukita has expressed his commitment to boost Indonesia's export performance this year.
"Global economic slowdown still hindered our economic performance in January-June 2019," the NasDem Party politician said in a press statement released on Wednesday.
Based on data from the Central Statistics Agency (BPS), Indonesia recorded a trade surplus of USD196 million in June 2019. However, cumulatively, Indonesia recorded a trade deficit of USD1.9 billion in the first semester of 2019.
"The Trade Ministry will develop high-quality and high-value-added export products in order to boost export performance," he noted.
According to Bank Indonesia (BI), Ongoing trade tensions continue to pressure world trade volume and undermine global economic growth. Flatter growth is predicted in the United States as exports decline due to simmering trade tensions, the fading effect of fiscal stimuli and restrained economic confidence. Growth has also slowed in Europe as a result of sluggish exports coupled with the ongoing structural issue of an aging population, which is undermining domestic demand. Declining exports and weaker domestic demand are also plaguing the economies of China and India.
Global economic moderation, in turn, has amplified downside pressures on commodity prices, including oil. Several central banks in advanced and developing economies have responded to the inauspicious economic dynamics by relaxing monetary policy, including the US Federal Reserve, which is expected to lower the federal funds rate (FFR). The prevailing policy response has reduced global financial market uncertainty and driven foreign capital inflows to developing economies.