The Rise of Export Oriented Indonesian Products

29 Okt 2021

By Nurfitriyani Barokah

Indonesia is a country that produces a variety of goods, from rubber to textiles to furniture. This statement can also apply to the Indonesian products sector. Indonesia’s export sector has been expanding in recent years, with Indonesia exporting goods worth $103 billion in 2017.
 
Indonesian products are not limited to commodities such as coffee and sugar cane. It also includes other products, such as textiles or other fashion items that are still produced domestically despite the presence of other international brands.
 
In general, Indonesian products can be divided into four categories: traditional handicrafts, agriculture and forestry products, processed agricultural and forestry products, and manufactured commodity-based products.
 
The role of the Indonesian Economy in the global market
Indonesia is an emerging economy with a huge population, and has the potential to be the next economic superpower. However, as Indonesia's economy grows, it must also maintain its economic competitiveness.
 
Indonesia's GDP share in the global market is still relatively low at 2 percent according to 2016 figures from trade website World Trade Organization (WTO). But the country must not be discouraged, it has shown great economic potential and can grow even further in to a larger player in global trade.
 
A brief background Indonesia's Export Industry
Indonesia is the largest exporter of textiles, footwear, and food. The most significant export destinations include Saudi Arabia, the United States, Japan, China, United Kingdom, Qatar and Malaysia.
 
The Indonesian export industry has seen a significant increase since the beginning of 2000s. This is partly thanks to the economic growth in Indonesia over this period. As a result of economic growth in Indonesia during this period, more people have been employed as an exporter. There has also been an increased demand for Indonesian products due to accelerating globalization and rising disposable incomes worldwide.
 
Indonesia's economy is highly reliant on exports as it only generates about 18% of GDP from domestic consumption.
 
How Indonesia is using agriculture to boost its international trade image
Indonesia's agriculture industry exports around US$15 billion in commodities, and is one of the world's largest tropical agricultural exporters. Since Indonesia has a population of 270 million, it is important that its agricultural exports are highly valued. Indonesia produces a wide range of products such as coffee, cocoa beans, cotton and tobacco. Indonesia's main export market includes European Union (EU), United States (US), Australia and Japan.
 
For decades, Indonesia has been known as the land of spices and has become more prominent in terms of exports because of its high quality produce. With new investments in agricultural development research and food production, Indonesia is now starting to take over the world market with its products.
 
 

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