Weak Exports Slow Poverty Reduction

Exports declined in the country’s main commodities, rubber and CPO. Natural rubber and rubber product exports fell 21.15 percent yoy during the first semester from $4.11 billion to $3.24 billion. The export volume of CPO dropped 4 percent to 10.24 million tons yoy in January-April.

Kompas/AGUS SUSANTO

A resident collects rice at Cipinang Rice Market in East Jakarta on Tuesday, July 17, 2018. Based on data from the Central Statistics Agency (BPS), the price of food contributed 73.31 percent to the poverty rate in March, 2017, increasing to 73.48 percent in March, 2018. These circumstances may slow the poverty alleviation rate.

JAKARTA, KOMPAS – The slowdown in poverty reduction is caused not only by the surge in food prices, but also by the weak performance of commodity exports.

Based on data from the Central Statistics Agency (BPS), the agricultural sector’s contribution to exports fell 7.68 percent year-on-year (yoy) to US$1.58 billion in January-June.