Indonesian Exports to Switzerland Soar in First Quarter of 2022
Referring to Swiss Federal Office for Customs and Border Security (FOCBS) data accessed in early May 2022, the total value of Indonesia's exports in the first quarter (January-March) 2022 was 1.26 billion US dollars, while the total value of Indonesia's exports to Switzerland in the first quarter 2021, amounting to 115.53 million US dollars. Thus, the total value of Indonesia's exports to Switzerland in the first quarter of 2022 increased sharply (up 998.08%) compared to the total value of exports in the first quarter of 2021 (yoy).
Meanwhile, Indonesia's trade balance surplus to Switzerland in the first quarter of 2022, amounted to 1.16 billion US dollars or around Rp. 16.67 trillion, while the trade balance surplus in the same period in 2021 amounted to 19.38 million US dollars or around Rp. 277.96 billion.
However, Indonesia's imports from Switzerland in the first quarter of 2022 increased by 9.96% compared to the same period in 2021, which amounted to 105.73 million US dollars. Meanwhile, the total value of Indonesia's imports from Switzerland for the same period in 2021 is US$96.15 million.
"This is certainly a significant progress for the economic relations between Indonesia and Switzerland, not only because of the improved distribution channels, but also because of the optimism that has developed after Indonesia - EFTA CEPA since late last year," said the Indonesian Ambassador to Switzerland and Liechtenstein, Muliaman Hadad, in a press release on Wednesday.
Since Indonesia's EFTA CEPA took effect, Switzerland and Liechtenstein removed 7,042 Tariff Posts (81.74%) or 99.65% of the value of Swiss commodity imports from Indonesia. In the first quarter of 2022, almost all of Indonesia's main commodities to Switzerland experienced an increase compared to the first quarter of 2021.
The main commodities that experienced a significant increase were Gold, precious metals and jewelry (HS 71) which increased by 679.26%, Organic Chemicals (HS 29) increased by 152.61%, and furniture (HS 94) which increased by 34.62%. Meanwhile, the main commodities, namely turbine engines and spare parts (HS 84), non-knitted textile products (HS 62) and essential oils (HS 3301.29) experienced a decline, namely 13.94%, 8.64% and 8.41% in the first quarter of 2022 compared to the first quarter of 2021.
Ambassador Muliaman is optimistic that economic relations between Indonesia and Switzerland will continue to improve, especially in the trade and investment sectors, even though the world economy is still experiencing uncertainty due to the war in Ukraine, supply bottlenecks and the unpredictable and unpredictable pandemic situation.
In the midst of global economic uncertainty, the Swiss economy is still doing well. The Swiss National Bank (SNB) reports that in 2022, Switzerland's GDP will increase by 2.5%.
Switzerland itself does not have direct economic ties to Russia and Ukraine, but for a country that relies heavily on foreign trade, such as Switzerland, the Ukraine war has resulted in an increase in world commodity prices, which causes the company's production costs to be higher. The SNB reported that inflation in Switzerland in February 2022 reached 2.2%.
Data from the Ministry of Investment/BKPM shows that in the first quarter of 2022, Switzerland ranks 5th from the European continent and 20th of all countries investing in Indonesia. The number of projects has reached 152 with a value of 15.7 million US dollars.
This investment cooperation will continue to increase with the signing of the Bilateral Investments Treaty and other cooperation which will be discussed during the World Economic Forum (WEF) on 22-26 May 2022 in Davos, Switzerland.
"This year's World Economic Forum, which coincides with the G20 presidency, will be the right momentum for Indonesia to show commitment and seriousness to explore the potential that emerges from the G20 priority agenda," Muliaman added.
As is well known WEF is a global platform in the economic, social and political sectors located in Davos Switzerland. Every year, the event is attended by more than 2500 participants from more than 100 countries consisting of world politicians, influencers, CEOs of leading companies, business people, actors, researchers and several world heads of state.
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