The greater priority is building a more diversified, higher-value export structure better able to withstand global economic shocks.Jakarta (ANTARA) - Indonesia should accelerate downstream processing and diversify exports to strengthen Indonesia's trade competitiveness and create new engines of economic growth as global trade becomes more volatile, according to the NEXT Indonesia Center research group.
Expanding downstream industries in key sectors including palm oil, minerals and manufacturing would shift exports toward higher-value goods, NEXT Indonesia Center Head of Research Ade Holis said in a statement received Sunday.
"The greater priority is building a more diversified, higher-value export structure better able to withstand global economic shocks. That would enable net exports to play a greater role in supporting Indonesia's long-term economic growth," Ade said.
Expanding value-added industries would boost export earnings while opening new markets, creating jobs, strengthening domestic manufacturing and improving Indonesia's position in global supply chains, he added.
Strengthening major export industries should be a policy priority through deeper palm oil processing, expanded mineral refining and improved competitiveness in steel, electronics, automotive, chemicals and broader manufacturing, he argued.
Those measures would help sustain Indonesia's trade surplus while creating a more productive and resilient export base capable of making a larger contribution to economic growth, Ade said.
Trade data indicate Indonesia's export sector remains resilient despite mounting external pressures, he said, based on data from Statistics Indonesia (BPS).
The analysis showed Indonesia recorded a cumulative trade surplus of US$4 billion during January through May 2026, reflecting resilient export performance despite slowing global demand.
Exports reached US$115.4 billion in the first five months of 2026, increasing 3.02 percent from the same period a year earlier, according to the data.
However, imports climbed 15.24 percent over the same period, narrowing the overall trade surplus and highlighting stronger domestic demand alongside rising purchases of foreign goods.
Indonesia posted a trade deficit of US$1.6 billion in May, which Ade said should be seen as an opportunity to accelerate structural export reforms rather than merely restore a monthly trade surplus.
Weakness across major commodity markets underscores the risks of relying heavily on raw-material exports, reinforcing the need to expand downstream industries and diversify export products, he said.
A stronger base of processed and manufactured exports would make Indonesia's trade sector more sustainable and better positioned to withstand shifts in the global economy while supporting sustainable long-term economic growth, according to the research group.
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Translator: Fitra A, Rahmad Nasution
Editor: M Razi Rahman
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