The trade balance in South Sumatra Province (Sumsel) until the third quarter or September 2023 showed a surplus of USD 3.80 billion. Denny Handoyo Supriatman, Head of the Financial Training Institute (BDK) in Palembang, stated in Palembang on Monday that this trade balance was contributed by the export value until September 2023, amounting to USD 4.9 billion, and imports worth USD 1.1 billion. He explained that South Sumatra's exports are still dominated by coal, pulp, and rubber, with coal exports contributing USD 2.1 billion in foreign exchange earnings. On the import side, South Sumatra is still supported by machinery and generators, recording an import value of USD 300 million. According to him, this surplus condition is in line with South Sumatra's well-maintained economic situation. This is indicated by several indicators, including consumption, production, and investment activities that are still on a positive trend.
"Looking at consumption indicators, we can see that the South Sumatra Consumer Confidence Index (CCI) stands at 143.9%. Furthermore, on the consumer credit side, it has been steadily increasing up to IDR 43.10 trillion until the third quarter," he explained. Additionally, when examining the production and investment indicators, which have three sub-assessments, such as raw material and auxiliary imports, working capital and investment credit, and capital goods imports, they continue to show a positive and even increasing trend. However, there are warning signs for South Sumatra regarding the condition of flagship commodities, which also affect the trade balance. One of these warnings is the declining trend in exports amid the gradual normalization of the prices of these key commodities. "After a golden era in the previous year, or precisely during the pandemic, it has now gradually returned to normal and has been declining. This condition has begun to impact South Sumatra's annual exports, which have contracted by 40.92%," said Denny.
