Key Programs to Reduce Trade Deficit to Begin in 2020

The government will implement six programs to reduce the country’s growing trade deficit. With such measures, the target stipulated in the 2020-2024 National Medium-Term Development Plan (RPJMN) can be achieved.

Kompas/Priyombodo

Aerial photo of Tanjung Priok Port in North Jakarta managed by PT Pelindo II, as seen on Monday (16/12/2019). According to Statistics Indonesia (BPS), the value of Indonesia’s exports in November 2019 was US$14.01 billion, down 6.17 percent from exports in October 2019. If compared to November 2018 the exports dropped 5.67 percent.

JAKARTA, KOMPAS - The government will begin an economic transformation to reduce the trade deficit in early 2020 by increasing exports and directing industrialization toward import substitution.

The two priorities are part of six programs eyed by the government to reduce the trade deficit. They include the mandatory use of B30 biodiesel (a fuel blend of 30 percent biofuel and 70 percent diesel), coal gasification, the restructuring of Trans-Pacific Petrochemical Indotama (TPPI), mineral smelter construction, the development of green refineries and the imposition of temporary safeguard import duties (BMTPS).