Exports and imports are one of the country’s economic activities that are commonly carried out. This economic activity can enable a country to trade goods with other countries.
Export and import itself is one of the materials discussed in economics subjects. Exporting goods can also be done through export service Trusted.
In this article, we will discuss the country’s economic activity in detail. Starting from understanding, goals, to benefits and commodities. Who knows, it can add to your knowledge about exports and imports. You can see all the discussion below!
Definition of Export and Import
Definition of Export
Let’s start with the notion of exports. In simple terms, export is the activity of selling goods from one country to another. This activity is usually carried out by a country that is able to produce an item in large quantities. Goods sold alone must be sold in accordance with the provisions in force in a country.
Countries that export to other countries are commonly called exporters. In Indonesia, this economic activity must be carried out in the customs area. For those who don’t know, customs is an area belonging to Indonesia that is included in the Creative Economy Zone.
Definition of Import
The opposite of export, import is an activity to buy goods by one country against another country. Countries that usually carry out imports are commonly called importers. Like exports, import activities in Indonesia must also be carried out in the customs area.
Importing countries themselves usually carry out this activity if they lack an item. For example, if the country lacks rice, then the country will buy rice from other countries that have a lot of rice stocks.
In Indonesia there is one import export services between logistics which has been trusted for the affairs of export and import of goods from and outside the country.
Purpose and Benefits of Exports and Imports
Export Destinations and Benefits
Every activity must have a purpose and benefit, including export activities. There are at least three goals and benefits behind export activities, namely:
1. Adding Foreign Exchange
Through export activities, a country will increase its foreign exchange. Not only that, these activities can also open up new market opportunities abroad, as well as grow investment.
2. Growing Domestic Industry in a Country
When a country wants to export, it must increase the production of the goods it wants to export. This makes a country must cultivate the industrial climate that they have. The better they do this, the more goods they can export.
3. Making a Country Can Control the Price of Their Goods
This one benefit is still related to the previous benefit. If a country is able to produce a lot of export goods, then the country can control the price of their goods. They can determine for themselves the price of their export goods.
Import Purpose and Benefits
Now we get to the purpose and benefits of imports. There are at least three objectives and benefits of import activities, namely:
- Meet the needs of a country that can not be met.
- Forms of communication and cooperation between countries.
- Improve the balance of payments and reduce the country’s foreign exchange spending.
Indonesian Export and Import Commodities
Export Commodities
Each country must have its own export commodities, including in Indonesia. There are at least six export commodities that are now a mainstay in Indonesia, namely:
1. Coffee
You could say that this is already one of the best-selling commodities in recent years. Not only domestically, but also abroad. Currently, Indonesia has exported two types of coffee to various countries in the world. The two types of coffee are none other than Arabica and Robusta.
2. Cocoa
If this one is a commodity that has long been a mainstay. Many countries buy this commodity as a raw material for chocolate. Some of them are Japanese, Russian, and English.
3. Rubber
It can be said that Indonesia is one of the largest rubber producers in the world. Rubber production itself is relatively stable, considering the large number of rubber plantations in Indonesia. The Philippines, Australia and Malaysia are the three countries that commonly buy Indonesian rubber.
4. Textiles and Textile Products (TPT)
In recent years, the textile industry in Indonesia has increased. This makes TPT a new commodity that can be relied upon. The majority of Indonesian textile products are exported in raw materials for the fashion industry. The destination countries for textile exports are England, France, Spain and Italy.
5. Shrimp
Indonesia has many commodities in the form of marine products. One of them that stands out is the shrimp. Based on BPS records, this one commodity managed to achieve an export value of up to US$ 3.51 billion last year.
This achievement is very amazing, considering the current condition of Indonesia which is still hit by a pandemic. Currently, shrimp have been exported to a number of destination countries, such as Singapore, Belgium, and Japan.
6. Furniture
So far, wood production in Indonesia is still quite good. This is a trigger for increasing furniture production in Indonesia. Even though it is still a pandemic period, furniture production in Indonesia is still quite good, so it can still be used as one of the mainstay commodities. In total, there are already seven destinations for Indonesian furniture exports. These countries are the UK, France, Japan, Singapore, the Netherlands, the United States, and South Korea.
Imported Commodities
Now we enter into imported commodities. So far, Indonesia has imported quite a number of imported commodities from various countries. Some of them are basic needs that should be self-produced.
Some examples of imported commodities in Indonesia are:
1. Rice
Even though Indonesia is a rice producing country, Indonesia still has to import rice. This is because rice production in Indonesia has not been able to meet the needs of all elements of society.
There are five countries that are sources of Indonesian rice imports. The five are Vietnam, Thailand, India, Pakistan and Myanmar. So far, the value of Indonesian rice imports has reached US$ 156.332 million.
2. Iron and Steel Pipe
To meet industrial needs, Indonesia imports iron and steel pipes. There are two countries that are importers of iron and steel pipes for Indonesia. The two are China and Iran. In total, there are about 280.4 thousand tons of iron and steel pipes that have been imported by Indonesia.
3. Aluminum
In addition to iron and steel pipes, Indonesia also imports aluminum from other countries. China is a major importer of these commodities. So far, Indonesia has imported around 311.11 million kilograms of aluminum.
4. Red Meat and Chicken
Although it can produce its own, Indonesia still needs to import red meat and chicken meat from other countries. The import process itself is carried out to meet the needs of the community for the two types of meat.
For red meat, Indonesia imports it from four countries. The four are New Zealand, Australia, the United States, and Singapore. For chicken meat, Indonesia imports it from Malaysia.
5. Vegetables and Fruits
Not only red meat and chicken, Indonesia also still imports vegetables and fruits. The reason for importing this commodity is the same as the previous commodity.
China is the main supplier of vegetables and fruits in Indonesia. For vegetables, Indonesia has imported 603.8 million kilograms. As for fruits, Indonesia has imported more than 397.7 kilograms.
Closing
Exports and imports are one of the economic activities that are commonly carried out by a country. Through this economic activity, a country can make transactions of buying and selling goods with other countries. This economic activity is also one of the commonly taught economics learning materials. If you want to add insight into economic activity, you can read all the explanations above.
