Indonesia’s Trade Balance Surplus from Switzerland Reaches US$1.34 Billion


Surprisingly, in the midst of the pandemic situation, Indonesia recorded a trade surplus from Switzerland of US$1.34 billion equivalent to Rp19.11 trillion last year. Indonesia’s trade performance has consistently strengthened and showed a surplus in the January-December 2021 period, with a total surplus of USD 1.34 billion or Rp. 19.11 trillion.

However, when compared to the 2020 surplus (YoY), Indonesia’s trade balance surplus to Switzerland in 2021 decreased by almost 60%. In 2020, Indonesia’s trade balance surplus to Switzerland reached USD 2.24 billion.

The reason for the decline was due to a decline in exports of gold, precious metals, jewelry/gems (HS 71) by -50.7% in 2021.

Reporting from Federal Customs Administration (FCA) data, the value of Indonesia’s imports from Switzerland in 2021 decreased by -31.4% compared to 2020. Thus, Indonesia’s exports to Switzerland decreased by -38.7% (YoY).

The value of Indonesia’s imports from Switzerland in 2021 is USD 360.29 million, and the value of Indonesia’s exports to Switzerland in 2021 is recorded at USD 1.69 billion. The previous year (2020), the value of Indonesia’s imports from Switzerland was USD 525.08 million, and the value of Indonesia’s exports to Switzerland in 2020 was USD 2.76 billion.

Commodities that Are Still Consistent

There are around ten commodities that consistently contribute to the trade balance surplus between Indonesia and Switzerland. The details are, in order of export value, including precious metals, jewelry/gems (HS 71), footwear (HS 64), non-knitted textile products (HS 62), knitted textile products (HS 61), electrical equipment (HS 85 ), furniture (HS 94), coffee (HS 0901), essential oils (HS 3301.29), turbine engines/spare parts (HS 84), and organic chemicals (HS 29).

Regarding the trade situation in Switzerland in 2021, the Swiss economy experienced quite high uncertainty. This is due to supply chain problems to health issues, especially the increase in the new Covid-19 variant (Omicron).

The State Secretariat for Economic Affairs (SECO) said that in 2021, Switzerland will experience inflation of +0.6%, even though the Swiss economic performance is still relatively good, namely GDP growth of 3.5% in 2021.

SECO estimates Switzerland’s GDP (Gross Domestic Product) in 2022 will reach 3%. This growth is predicted to be heavily influenced by supply chain problems, inflationary pressures, the Omicron variant, the strengthening of the Swiss Franc (CHF), and an intense competition faced by the pharmaceutical and banking industries.

In the midst of these complex problems, the Indonesian Ambassador to Switzerland and Liechtenstein, Muliaman Hadad, estimates that 2022 will still provide a positive picture for the economic relations of the two countries.

Ambassador Muliaman said, “The projection is not without reason considering that the modalities for improving economic relations between the two countries already exist, namely with the entry into force of the Indonesia-EFTA CEPA on November 1, 2021.”

He added that the Indonesia-EFTA CEPA does not only cover the trade sector, but also sustainability programs, capacity building, and knowledge transfer and investment.