In the first semester of this year (January – June), the total trade between Indonesia and Switzerland increased by 55.1 percent or worth 1.80 billion US dollars, compared to the first semester of 2021 of 1.16 billion US dollars. Indonesia's exports to Switzerland increased by more than 60 percent or US$1.60 billion compared to the same period last year. This value makes Indonesia rise two ranks to become the 24th largest exporter in Switzerland, or 0.9 percent of the total value of Swiss imports from the world (semester 1/2021: 0.6 percent).
Meanwhile, Indonesia's imports from Switzerland also increased by 12.8 percent or worth 210.95 million US dollars, while in semester 1/2021 it was worth 187.05 million US dollars.
In total, Indonesia's trade balance surplus against Switzerland in the first semester of 2022 is US$1.38 billion. This value increased by 18.8 percent compared to the trade balance surplus in the first semester of last year of US$787.33 million.
Indonesia's main export commodities to Switzerland are still dominated by gold, precious metals, jewelry (HS 71), which is 84 percent of Indonesia's total exports to Switzerland or worth 1.34 billion US dollars. Besides gold, commodities that consistently occupy the top 5 in Indonesia's exports to Switzerland include footwear (HS 64) and non-knitted textiles (HS 62) and knitted textiles (HS 61) each contributing approximately 4.0 percent, 2 .2 percent, 1.2 percent of total trade.
The main commodities that experienced a significant increase were gold (HS 71), furniture (HS 94), leather (HS 42), and electrical machinary (HS 85), which rose 83.1 percent, 21.2 percent, 13 ,4 percent and 10 percent. Meanwhile, the main commodities that experienced a decline compared to the first semester of last year, were essential oils (HS 33) which fell 20.1 percent and machinery and mechanical appliances (HS 84) decreased by 15.4 percent.
The Indonesian Ambassador to Switzerland and Liechtenstein, Muliaman Hadad, said that the increase in Indonesia-Switzerland trade was good news in the midst of an uncertain global economy, especially with the Ukraine-Russia war and rising global inflation.
“Situations like this actually provide an opportunity for Indonesia to fill the needs of consumer countries whose commodities were previously supplied by Ukraine, Russia and the affected supply countries. For example, Switzerland is one of Russia's gold importers, while Indonesia is also one of the world's largest gold exporters," said the former chairman of the OJK.
As is known, the leaders of the richest countries in the world (G7) are preparing to impose a ban on the import of precious metals from Russia by Switzerland. The focus of the G7 is gold, which is Russia's second largest export commodity after energy.
When looking at the total value of Indonesia-Switzerland trade, the latest data from the Swiss Federal Office for Customs and Border Security (FOCBS), this semester, Indonesia's ranking has risen to 33 compared to semester 1/2021 which is still ranked 43.
"Jumping up to 10 rankings is certainly very good news, indicating that economic cooperation between Indonesia and Switzerland can be taken advantage of, such as the Indonesia-EFTA CEPA and other cooperation," added Ambassador Muliaman, in a press release.
As is known, during WEF 2022 in Davos, Indonesia and Switzerland have also signed four economic agreements, including the Bilateral Investment Treaty, Kadin and Economiesuisse in the trade and sustainability sector, and the Kadin and Innosuisse agreement in the capacity building and innovation sector, as well as the agreement to establish Indonesia. Trading House between Kadin and the Indonesian business diaspora in Switzerland.
