Indonesia’s Export Growth in 2024, Agricultural Sector Leads The Way

Founder & CEO Supply Chain Indonesia (SCI), Setiadji giving a speech on Indonesia's Export Growth

Indonesia’s exports showed positive growth in 2024, with the Central Bureau of Statistics (BPS) reporting a cumulative export value increase of over 2 percent compared to the previous year.

Non-oil and gas exports also experienced a similar rise, indicating a stable upward trend in the country’s trade performance. This growth reflects Indonesia’s resilience amid global economic fluctuations and the continued demand for key commodities.

 

Growth in Key Sectors

The manufacturing sector played a significant role in this growth, driven by increased exports of precious base metals. Global demand for these metals, particularly gold and nickel, remained high as industries sought raw materials for technology and infrastructure projects. Meanwhile, agricultural, forestry, and fishery exports saw a notable surge of nearly 30 percent, mainly due to higher coffee exports. Indonesia, as one of the world’s largest coffee producers, benefited from increasing global consumption and higher commodity prices.

However, mining sector exports declined by around 10 percent, largely because of reduced coal shipments. This decrease can be attributed to shifting global energy policies and reduced coal demand from major importing countries. The transition to renewable energy in several markets has also affected coal exports.

Setijadi, Founder & CEO of Supply Chain Indonesia (SCI), emphasized the need for an efficient cold chain system to preserve perishable agricultural and fishery products.

“Cold storage warehouses and specialized technologies such as controlled atmosphere storage (CAS) are needed to maintain product quality,” he said. “Without these facilities, Indonesia risks losing competitive advantage in the global market due to spoilage and quality degradation.”

Additionally, he stressed the role of improved packaging and consolidation processes in boosting efficiency and achieving economies of scale. “Downstream processing in the agricultural, forestry, and fishery sectors is crucial to enhance product quality, quantity, and competitiveness,” he added. The government has been encouraging value-added processing to increase export value rather than relying solely on raw commodity exports.

 

Regional Export Contributions

Verani Hartati, Head of the Supply Chain Management Laboratory at Widyatama University, pointed out regional disparities in export contributions. Three provinces accounted for a significant share of national exports:

  • West Java: USD 37.87 billion (14.31 percent) – A major hub for manufacturing and electronics exports.
  • East Java: USD 25.72 billion (9.72 percent) – Strong in agriculture, fisheries, and processed food industries.
  • East Kalimantan: USD 25.46 billion (9.62 percent) – A key contributor in natural resources, particularly coal and palm oil.

 

She encouraged regional export development based on local product potential, emphasizing that such efforts could support both national trade and local economic growth.

“This program is not only for export growth but also for regional economic development,” she stated. The government has been working on programs to develop export centers outside Java, ensuring that all regions benefit from trade expansion.

 

Enhancing Logistics and Trade Infrastructure

Verani also highlighted the importance of improved logistics connectivity through better coordination between ministries and institutions.

“Enhancing logistics connectivity should be based on supply chain mapping and the development of an appropriate hub-and-spoke system,” she explained. A well-structured logistics network can reduce costs and improve the competitiveness of Indonesian exports in global markets.

Moreover, the establishment of strategic export gateways is necessary to ensure efficient and effective product distribution to global markets. The government has been investing in port modernization, digital tracking systems, and improved transportation infrastructure to support exporters. These efforts aim to reduce delays and enhance Indonesia’s position as a reliable global trade partner.

 

 

Source: Indonesia.go.id

Image: transgo.co.id

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