Jakarta's Central Statistics Agency (BPS) reported that the city's exports in February 2026 amounted to $1.35 billion, representing a decrease of 10.55% compared to the same month last year. The head of the agency, Kadarmantho, explained that this decline is primarily due to a 10.85% drop in non-oil sector exports.
Kadarmantho also noted that the weak performance of the manufacturing sector, which recorded a 9.36% decline, significantly impacted total exports. The agriculture and mining sectors were also affected, with agricultural exports falling by 50.77% and mining exports by 96.4%.
Details of the Event
During the first two months of 2026, Jakarta's total exports reached $2.90 billion, reflecting a slight decrease of 0.96% compared to the same period last year. This decline is attributed to a 1.39% drop in non-oil sector exports, which was particularly affected by the downturn in agriculture and mining exports.
Despite this, the manufacturing sector showed overall positive performance, recording a growth of 0.68% compared to the same period last year. Precious metals and jewelry exports topped the export list, contributing 19.16% of total exports, followed by automotive and parts exports at 18.55%, and footwear exports at 16.75%.
Background & Context
Jakarta is considered one of the largest economic cities in Indonesia, playing a pivotal role in regional and international trade. In recent years, the city has experienced fluctuations in its export performance, reflecting the challenges it faces amid global economic changes.
Jakarta's exports are influenced by several factors, including global trade policies, commodity prices, and changes in demand from key markets such as the United States and China. In recent years, there have been attempts to boost non-oil sectors, but results remain mixed.
Impact & Consequences
These declines in exports can affect the local economy, as many workers and small businesses rely on these sectors for their income. Additionally, a decrease in exports may lead to reduced foreign investments, negatively impacting future economic growth.
Furthermore, these changes may increase pressure on the Indonesian government to adopt new economic policies aimed at promoting growth and stimulating exports. It is crucial for the government to implement effective strategies to support the affected sectors and enhance the competitiveness of Indonesian products in global markets.
Regional Significance
Indonesia is an important trading partner for many Arab countries, with some Arab nations importing Indonesian goods such as food products and agricultural items. Therefore, the decline in Jakarta's exports may impact trade relations between Indonesia and Arab countries.
It is essential for Arab nations to monitor these developments, as they may open doors to new opportunities for trade and investment cooperation, especially in sectors that continue to show growth, such as the automotive industry.
In conclusion, Jakarta's exports remain under pressure from economic challenges, necessitating an effective response from the government and the private sector to ensure sustainable economic growth.