REPUBLIKA.CO.ID, JAKARTA -- Indonesia significantly lowered its trade deficit with China last year, Trade Attache of the Indonesian Embassy in Beijing, Dandy S Iswara said on Friday. Indonesia's exports to China stood at US$28.50 billion, while its imports from the world's second largest economy reached US$34.85 billion last year, according to data from the Chinese customs authorities.
As a result, Indonesia suffered a deficit of US$6.35 billion in its trade with China last year.
The deficit is far lower than those recorded in 2015 at US$14.55 billion and in 2016 at US$11.97 billion. Dandy said the increasingly lower deficit is the result of the Indonesian government's success to press China to balance its trade with Indonesia.
"We are optimistic that Indonesia's trade deficit (with China) will continue to decline in the years to come," he said.
The optimism is quite reasonable now that the Chinese government is set to issue a policy this year to resume the import of Indonesian mangosteen after three years of suspension.
China has also allowed Indonesia to export pineapple to China. In addition, demand for Indonesian palm oil and swallow nest is also high in China.
While receiving a visit from Chinese Deputy Minister Liu Yandong last year, Indonesian President Joko Widodo underscored the need for the two countries to balance their trade.
Indonesia reiterated its call for China to balance the bilateral trade when Indonesian Foreign Minister Retno LP Marsudi met with her Chinese counterpart, Wang Yi in Beijing last month.
Wang Yi said Indonesia is a very important trade partner for China.
On the other hand, according to BPS, Indonesia had recorded a trade deficit of $1.83 billion with China, $211.4 million with Thailand, and $178.2 million with Australia in January 2018.
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