Indonesia Eyes Export Growth to Offset Rising Oil Prices: Minister

Indonesia anticipates that the impact of rising global oil prices on its economy can be mitigated through increased exports, according to a government minister. Trade Minister Muhammad Lutfi emphasized that the expansion of exports, particularly from the non-oil and gas sector, is key to achieving this goal. Lutfi explained that the Indonesian economy remains on a strong recovery path amidst rising global inflationary pressures and geopolitical uncertainties. He predicted that export growth, especially from robust performance in sectors like manufacturing and agriculture, would absorb the increase in import costs. This indicates Indonesia's focus on an export-driven growth strategy as it aims for economic recovery post-pandemic. Indonesia, the fourth most populous country and the largest economy in Southeast Asia, has been increasingly focusing on digital economy development and infrastructure investment in recent years, promoting a transition towards a more diversified industrial structure. However, the surge in oil prices poses a concern for Indonesia as an energy importer, potentially affecting its trade balance and domestic inflation. The government plans to address these challenges by strengthening export competitiveness and fostering domestic industries.