Indonesia to hold trade expo
Trade Expo Indonesia (TEI) will begin today virtually.
TEI is an annual trade fair arranged to boost Indonesian exports by increasing and diversifying market access. Last year’s event attracted 1,500 companies and 38,500 visitors and saw total transactions generating $9.3 billion. This year, Indonesia’s Trade Minister Agus Suparmanto is expecting a higher turnout and increased value in transactions.
TEI comes as Indonesia faces its first recession in 22 years. Economic growth contracted 5.32% in the second quarter of 2020 and 3.49% in the third quarter, largely because all GDP components fell due to COVID-19. Indonesia’s net exports have been particularly affected.
Analysts are hopeful that the recession will be short-lived, and GDP has expanded 5.05% compared to previous quarters. However, exports are still 10.82% lower than year-on-year figures and private consumption has continued to decline. Even if the TEI can increase Indonesia’s exports, the government will still need to stimulate private consumption and reduce unemployment, which has surged to 7%. Although the Indonesian government has increased spending and unveiled a new job creation bill to address these issues, its successful recovery ultimately depends on how effectively the government can manage the pandemic and safely reopen the country.
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