Jakarta: Economist Candra Fajri Ananda of the Malang-based Brawijaya University (Unibraw) has openly backed the Indonesian government's determined attempts to open access to the South American market to lessen dependence on traditional export markets.
"Indonesia currently relies on the classical market, including the United States and China. Thus, expanding its (export) markets is deemed significant," Ananda remarked in a written statement released on Tuesday.
Hence, Indonesia must build cooperation with South American nations to boost its national branding and garner global support, he noted.
However, factors, such as South America's low economic growth and both nations being located far from one another, have posed a hindrance for Indonesian businesspersons to increase their market in South America, he explained.
Ananda pointed out that the Middle East and West Africa are among the potential markets that may turn out to be key contributors to Indonesia's foreign trade.
"For economic reasons, the Middle East is good, and so is West Africa," he noted.
The Indonesian trade minister had earlier undertaken a working visit to Argentina and Chile as part of the endeavors to expanding the export market for Indonesian products.
In Argentina, he met with the foreign affairs minister and businesspersons to build trust.
The current account deficit in the first quarter of 2019 recorded at USD7.0 billion (2.6 percent of GDP), lower than the previous quarter’s deficit of a USD9.2 billion (3.6 percent of GDP).
A narrower current account deficit was primarily driven by an increasing goods trade surplus, supported by an incline in the non-oil and gas trade surplus coupled with reductions in the oil and gas trade balance deficit.
Such dynamics were influenced by a deeper imports decline compared to decreased exports, in line with government’s policy to control the import of certain commodities which has been implemented since the end of 2018.
Meanwhile, the services trade deficit increased mainly due to a lower travel services surplus as the number of foreign tourists visits decreased in accordance with the seasonal trends, amidst declining imports of freight services. (Antara)