What is Contributing to Indonesia Trade Imbalance?
The imbalance of Indonesia’s trade has been a long-standing issue and a matter of concern for the government. Indonesia has been running a trade deficit since the late 1990s, and the deficit widened to US$69.8 billion in 2017. This means that Indonesia’s imports exceed its exports by a significant margin.
There are several factors that have contributed to Indonesia’s trade imbalance. Firstly, Indonesia’s exports are concentrated in a few sectors, such as natural …