Anticipating Decline in Indonesia's Export Performance

The cost of living crisis indicates weakening global purchasing power and has the potential to reduce Indonesian exports. However, there is still a chance to halt the decline in exports.

KOMPAS/AGUS SUSANTO (AGS)

Container loading and unloading activities at Tanjung Priok Port, North Jakarta, Thursday (23/9/2021).

JAKARTA, KOMPAS — The global cost of living crisis could cause a decline in Indonesia's export performance. This could happen because buying power has fallen in countries around the world, especially in Indonesia's main export destinations.

A survey that French multinational market research and consulting firm Ipsos conducted for the World Economic Forum (WEF) showed that one in four people in developed countries were experiencing financial difficulties. They had to cut their food, electricity and heating costs. They also reduced social activities in cafes and restaurants and delayed buying decisions for high-value items.