Despite Logistics Disruptions Due to Covid-19, Export of Agricultural Commodities Up

Despite logistics disruptions amid the coronavirus (covid-19) outbreak, Indonesia’s exports of agricultural commodities had shown a positive performance, proved by the increase export value during the first quarter (Q1) 2020.

The Ministry of Agriculture has just reported that in Q12020, the export value rose 14.35% year on year, to around Rp 100 trillion.

In April, Indonesia exported nearly 1.5 million tons of at least 166 types of agricultural products, which were valued at Rp 26.8 trillion (US$1.7 billion).

“We have noticed that our exports have continued amid the COVID-19 pandemic,” the ministry’s Agriculture Quarantine Agency head, Ali Jamil, said in an online briefing on April 30 as quoted by thejakartapost.

The fast-spreading coronavirus, which has infected over 3 million people worldwide, has forced some countries to temporarily impose lockdown measures to contain the spread of the virus, causing logistical disruptions.

The disruptions have in part caused the volume of Indonesia’s agricultural exports to decline slightly by 0.1 percent year-on-year (yoy) to 9 million tons between January and March. In March, agricultural exports accounted for 2.25 percent of the country’s total exports.

However, the ministry reported the export value rose 14.35 percent yoy to around Rp 100 trillion between January and March.

With the pandemic having an impact on food availability, the Food and Agriculture Organization (FAO) has warned countries that it is important to ensure that trade restrictions do not distort the global market.

The Trade Ministry temporarily eased the import process for several key commodities by allowing companies to purchase products from overseas without permits. The Agriculture Ministry sped up the issuance of import recommendations for over 460,000 tons of garlic.

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