Indonesia recorded a surplus of the highest trade balance value in history, which amounted to 30.81 billion US dollars in January-October 2021. Indonesia has expressed its refusal to enter into agreements related to global supply chains, which allowed Indonesia to export raw materials at the G20 meeting in Rome. Since January 1, 2020, Indonesia has officially stopped exporting nickel. If a country wants nickel from Indonesia, then it must invest and process it domestically into value-added products. The decision led to a lawsuit by the European Union against Indonesia at the World Trade Agency or World Trade Organization (WTO). Naturally, the President said that the European Union is one of the export destination countries Indonesian raw materials. However, the President is not afraid even though the steps he has taken may result in Indonesia being blocked by the government of other countries. After nickel, the President is aiming for bauxite, copper, and tin to continue the plan to stop the export of raw materials. President Jokowi seeks to prevent the export of raw materials that will smooth the process of industrialization and downstream in the country. The focus on automation and downstream efforts is one of Indonesia's keys to evolving its trade successfully. The Minister of Trade, Muhammad Lutfi, projects that, although the oil and gas trade balance deficit is still depressed, the smooth performance of exports will bring Indonesia to the most significant trade balance surplus in history, reaching 37 billion US dollars by the end of 2021. This achievement also indicates the evolution of Indonesia's trade. In 2011, three of the five products that were Indonesia exports were primary commodities, including mining goods, namely coal, rubber, and metal ore. Meanwhile, in 2021, Indonesia's export products will evolve into value-added industrial goods, such as Crude Palm Oil (CPO) and its derivatives, steel, electronics, and automotive. In the past ten years, we never imagined that Indonesia would become a strong steel exporting country; in 2020, Indonesia's steel exports reached 10.86 billion US dollars. The Minister of Trade estimates that by the end of 2021, steel exports will increase to 20 billion US dollars. The success story of Indonesia's evolution as a seller of raw goods to become an exporter of industrial and valuable industrial goods plus doesn't happen overnight. Still, there are various efforts made in a disciplined manner.
Entering January 2021, Indonesia's trade balance recorded a surplus of US$1.9 billion. The most significant contribution comes from the non-oil and gas balance surplus, which reached 2.6 billion US dollars, and the oil and gas balance deficit of 668.1 million US dollars. The surplus at the start of the year was the highest since January 2014, where it was a deficit of US$0.43 billion. The trade balance surplus trend continued in February 2021, which reached 2 billion US dollars. The surplus contributed by a non-oil and gas surplus of 2.44 billion US dollars and an oil and gas balance deficit of 0.44 billion US dollars with commodities contributing to the surplus, including mineral fuels, animal/vegetable fats, and oils, iron and steel, rubber and rubber products, and footwear. In March 2021, the Central Statistics Agency (BPS) recorded that Indonesia's trade balance experienced a surplus of US$1.57 billion, with the total value of exports being 18.35 billion US dollars and imports 16.79 billion US dollars. In the third month, Indonesia scored the highest export record since 2011 when the export figure reached US 18.64 billion. Three Export commodities that boosted Indonesia's non-oil and gas exports were steel, CPO, and automotive.
Indonesia's trade balance surplus again occurred in April 2021 of 2.19 billion US dollars with an export value of 18.48billion US dollars and imports 16.29 billion US dollars. Surprisingly, Indonesia's export value in April set a record high since august 2011 or ten years ago; the figure was 18.64 billion US dollars. The high value of exports is inseparable from commodity prices in global markets, which also rose in that month. Indonesia's trade balance in May 2021 returned to a surplus of 2.36 billion US dollars. Thus, the surplus on May made Indonesia experience a surplus for 13 consecutive months since May 2020. The surplus in May was the highest throughout 2021. Initially, the highest surplus occurred in April 2021 of 2.19 billion US dollars. Indonesia's trade surplus broke a record again in August 2021 with a value of 4.74 billion US dollars. Indonesia's trade balance again recorded a surplus in October 2021 of 5.73 billion US dollars. Trade Minister said that the trade balance surplus was the largest in Indonesia's trade history. In the tenth month, Indonesia also scored the highest export performance during its foreign trade. Export in October 2021 was recorded at 22.03 billion US dollars. October export performance sets a new record with the highest monthly export value in history, surpassing the August 2021 figure. Indonesia's trade balance is getting smoother until November 2021, which reaches a surplus of 3.51 billion US dollars. A series of achievements trade gave Indonesian trade the upper hand with an accumulative surplus for the January-November period2021 amounting to 34.32 billion US dollars or equivalent to Rp.492.42 trillion. This value is almost double the surplus for the same period in 2020, 19.52 billion US dollars. By the end of 2021, the trade balance surplus is projected to reach 37 billion US dollars.
Meanwhile, the accumulation of export value throughout 2021 is expected to reach 209 billion US dollars. If it is achieved, Indonesia has penetrated the highest export record only since 2011; the figure is 203.5 billion US dollars. With these achievements, it is not surprising that various parties predict that the Indonesian economy will quickly recover from the impact of the COVID-19 pandemic. Hopefully, not only will Indonesia recover, but Indonesia will also begin to show off its trading power as a sweet fruit evolved
