Trade Minister: Middle East Accounts for 3.49% of Indonesia's Total Exports

5 hours ago 6

TEMPO.CO, Jakarta - Minister of Trade Budi Santoso stated that Indonesia’s export performance continues to show a positive trend despite ongoing global geopolitical tensions, particularly conflicts in the Middle East.

According to Budi, the recent escalation triggered by Israel and its ally, the United States, in their attacks on Iran puts pressure on global trade, including Indonesia’s exports. Rising protectionist policies in various countries further add to the challenge.

“Amid global uncertainty, our export performance demonstrates significant resilience,” Budi said during the launch of the Campuspreneur Program: Development of Export-Oriented Young Entrepreneurs at Sebelas Maret University (UNS) Solo, Central Java, on Thursday, April 2, 2026.

Based on data from the Central Statistics Agency, Indonesia’s export value for January–February 2026 reached US$44.32 billion, up 2.19% compared to the same period in 2025. Budi described this as a signal that global market opportunities for Indonesian products remain robust.

“Nevertheless, the government remains cautious about the ongoing impact of geopolitical conflicts, particularly on supply chain stability and market demand,” he added.

Budi noted that the Middle East currently accounts for around 3.49% of Indonesia’s total exports, or approximately US$9.87 billion. Given the significance of this figure, safeguarding it from disruption due to escalating conflicts is a priority.

In response, the Ministry of Trade is implementing several measures, with a key focus on expanding and diversifying export markets to reduce reliance on specific regions. While market diversification is not a new strategy, it has become increasingly relevant amid crises that can quickly reshape trade dynamics.

Budi cited the Covid-19 pandemic as an example, when global supply chain disruptions created opportunities for other countries to fill market gaps.

In addition, the government is working to optimize Indonesia’s trade agreements to reduce tariff and non-tariff barriers and strengthen the competitiveness of national products abroad.

“When global disruptions occur, new opportunities always emerge. The key is how quickly we can capitalize on them,” Budi said.

With a combined strategy of market diversification and trade cooperation optimization, the government remains optimistic that Indonesia’s export performance can not only be sustained but also expanded, even amid a volatile and uncertain global landscape.

Read: Iran: Opportunity Remains for Indonesian Ships to Cross Strait of Hormuz

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