Trade Incentive: Is It Worth It?

The Trade Minister, Muhammad Lutfi, is pushing forward the idea to grant a special incentive in the trade sector and boost the performance of related companies hit hard by the COVID-19 pandemic. "I want to talk with Mrs. Sri Mulyani to provide an incentive encouraging people to consume," he said.

Lutfi argued that the incentive had to be able to increase the public consumption level and rejuvenate the trade sector. He also highlighted that the US$21.74-billion trade surplus in 2020 was a coincidence and did not represent a good performance. The surplus occurred because the decline in imports was higher than the decline in exports, while in the past a surplus occurred since exports to several countries increased.