Export-import activities have become a mandatory agenda in every country’s trade. Export-import activities are very important to exchange products in the form of goods or services. In other words, export imports are carried out to cover a country’s lack of product availability. Without this export-import activity, it means there is an imbalance in a country’s trade balance. Unbalanced trade balance, meaning that the economy is not going well. An economy that is not good, will certainly have an adverse effect on the people. This export-import article explains Indonesia’s export-import products. Let’s see whether Indonesia’s trade balance is quite good or not.
Definition of Import Export
Export is an activity to sell goods and services in other countries. Meanwhile, imports are activities carried out otherwise. Namely, activities to buy goods and services from other countries. With simpler language, export means selling and importing means buying.
When a country’s exports are greater than its imports, it means that the country has a trade surplus. This trade surplus has a very good impact on the nation’s economy. For example, China. With the greatness of the Chinese nation to make cheap products that look so attractive, it has made this country able to export its goods to the entire world including America. There is even the term ‘The China’ which is intended for goods made in China.
These Chinese-made goods may have less quality compared to similar products from other countries that are more concerned with quality. But these Chinese products are really needed by the people so they don’t care too much about quality. For them, they want to have these items even with a much lower quality.
The cheapness of goods from China has made many countries think and implement a new trading strategy with China. The United States has only been overwhelmed by the invasion of goods from China, especially Indonesia, which is still technologically inferior to Jah from America. Chinese people who are very creative with cheap labor have made the Bamboo Curtain nation able to make goods needed by the people at very low production costs.
The Indonesian nation needs to implement new regulations in terms of import export so that there is protection against all Indonesian original goods and services. If not, then Indonesian entrepreneurs will prefer to be distributors and traders rather than producing merchandise. If this happens, the hundreds of millions of Indonesians can only be an area of marketing goods from other countries. If this happens, this nation will definitely get worse and Indonesia’s foreign debt will swell to fund the purchase of goods and services from abroad.
Destination of Import Export
Export-import activities can generate income for the country called foreign exchange. Foreign exchange is the process of entering foreign money into a country that can be used as a means of payment for imported products and services. Export-import activities of course aim to meet people’s needs and increase foreign exchange.
If our country feels a lack of a product or service or does not produce these products at all, import activities are carried out. Conversely, if our country is able to produce certain products in abundant quantities and is needed by other countries, export activities are carried out.
Basically, export-import activities can benefit both countries that carry out transactions or cooperation to fulfill the needs of their people. Even if one country experiences a surplus and the other country experiences a deficit, it means that the country experiencing the deficit must improve itself and evaluate what is wrong with its unsold products in other markets. If this is not done quickly, then the country will experience an increasingly severe trade deficit. Of course this will be a very bad precedent for the economic development of the country concerned.
There are many ways to increase trade, for example, prohibiting the export of raw materials directly without going through the process of transferring raw materials into one product that has been made. For example, the good results of Indonesian rattan are not sold in the form of raw rattan. The rattan must be processed first into finished goods, only after it is exported. If the raw material for rattan is exported directly, then it could be that the finished goods made from rattan will go back to Indonesia. This has happened so that rattan products in the form of finished goods from Indonesia are unable to compete with Chinese products that use Indonesian rattan.
Indonesian Import Export Products
Overall, export-import products are grouped into 2 types, oil and gas goods and non-oil and gas goods. Oil and gas goods are goods
Indonesian Import Commodities
Imported goods that enter Indonesia are no less. Both in the form of raw materials, capital materials, and supporting materials. These materials are certainly needed by industries in Indonesia.
The following are items imported by Indonesia. For example, to become the largest exporter of palm oil in the world, sawait coconut factories in Indonesia turned out to be taking spare parts for oil palm management machinery from Malaysia. Local products have not been able to compete with imported products from Malaysia. This is what is meant by the process of exchanging production goods.
Among other imported products needed by Indonesia are consumer goods, including food, beverages, butter, milk, meat and rice. Industrial raw materials and auxiliary materials, including chemicals, paper, drugs, and motorized vehicles. Capital goods, including machinery, spare parts, aircraft, computers, and various heavy equipment.
Agricultural products, including flour, soybeans, rice and fruits. Livestock products, including milk and meat. Mining products, including petroleum and gas. Industrial goods, including chemicals, electronic goods, and vehicles. Product services by bringing in experts from abroad.
Regarding these import needs, sometimes Indonesia faces difficulties that greatly disrupt the lives of small people. For example, imports of soybeans from the United States pegged at very high prices have killed some entrepreneurs who know tempeh in the country. What happens next is the disappearance of one of the protein-enhancing ingredients that is needed by people with lower middle income. They hope that tofu and tempeh that are still cheap will provide a little extra protein. But if tempeh and tofu disappear because the price of soybeans is expensive, then what should be expected again. Even though the price of chicken eggs or other poultry eggs is very expensive.
The fate of the small people is very dependent on the government. Without excellent attention and tolerance from the government, the people will become miserable. Indonesian farmers have difficulty planting soybeans because land that is not suitable for soybeans and other types of land is also increasingly narrow.
That is a brief description of the contents of the Indonesian export import article. May be useful!
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