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The Impact of the Pandemic on Exports and Imports in Indonesia - The current global pandemic has had many impacts in all sectors. The economy of a country can be a benchmark for the consequences that arise from the pandemic itself.
Indeed, between one sector can affect other sectors. At the beginning of the pandemic, the Indonesian government seemed to be faced with two choices, prioritizing public health or the country's economy. These two things are not easy choices. If health comes first, the economy will automatically be destroyed. Overcoming this pandemic is indeed implementing social restrictions both large and small scale. This is inversely proportional to import-export activities which require a lot of interaction during these activities.
It can be said that the economic sector is the sector most affected by this pandemic, especially in the export-import sector. Restrictions on activities at the beginning of the pandemic are a factor that affects economic activity itself. Coupled with the lockdown from several countries, making the export-import process even more difficult.
Indonesia's Export Import Development during the Pandemic
If we look at Indonesia's economic growth from 2020 to 2022, it has decreased significantly. Some countries in Asia, such as South Korea, even stated that their country was experiencing a period of recession. The threat of a recession in Indonesia appeared in the third quarter of 2020. However, the Indonesian government claimed that Indonesia survived a recession in the third quarter of 2021.
At the beginning of the pandemic, the pandemic changed the pattern of import-export trade from the world market. China, which is one of the destination countries for Indonesia's exports and imports, declared its country's lockdown to overcome the spread of the COVID-19 virus. As a result, there is an increase in demand coupled with a shortage of commodities due to supply chain instability.
A real example that we can feel for ourselves is that in 2020 the price of health masks suddenly soared many times the normal price. High market demand, but the producers arrived able to distribute their goods. Finally, there is a shortage, which has the price of goods soaring.
The health masks that we use are imported goods from China. According to the percentage of export-import cooperation between Indonesia and China, China is able to import 26% and Indonesia exports 17.6% of its needs from China itself.
The impact of the pandemic on export-import activities can of course be seen in this change in the pattern of activities from export-import. Changes can be seen from the health protocol rules which have an impact on increasing shipping costs. Coupled with several import-export bans for health and food products. So it can be said that the perpetrators of export-import activities must completely change their trading strategy so far.
Despite experiencing a recession at the beginning of the pandemic, Indonesia is still able to rise from the abyss of recession in 2021. The government is trying to boost import-export activities with all its efforts.
Government intervention to stimulate economic activity, especially in the import-export sector, is very important. The government is trying to maintain a balance between market commodities and market demand. As well as changing the export-import pattern following the health protocol.
Looking at the graph of Indonesia's economic growth, it is clear that a health crisis will cause an economic crisis. However, when viewed from economic growth in the first quarter of 2022, Indonesia was able to show economic growth of 3.7%. Indeed, it is less than the fourth quarter of 2021, which is 5.1%. According to the Indonesian Minister of Trade, Muhammad Luthfi, Indonesia's Export-Import Developments can continue to increase if the spread of the COVID-19 virus can be controlled.
Use the services of Indotransjaya Nusantara to assist you in importing and exporting.