The Impact Of Downstream Policies On The Growth Of Indonesia's Net Exports Of Iron And Steel (HS 72)

Mahani, Khadijah
Hendrati, Ignatia Martha
Wardaya, Wirya

EKOMBIS REVIEW: Jurnal Ilmiah Ekonomi dan Bisnis
Vol 13 No 3 (2025): Juli

This study examines the impact of downstream policies on Indonesia's net exports of iron and steel (HS 72) during 2000–2023. The downstream policy, aimed at enhancing value-added and reducing raw material exports, is crucial for improving trade balances and boosting economic growth. Using paired t-tests and Export Product Dynamics (EPD), the study reveals significant increases in total exports (5%, 0.041) and total imports (1%, 0.001), while net export improvements were marginally significant (10%, 0.08). Despite the positive impacts, challenges such as high dependency on imported raw materials and the need for substantial infrastructure investments persist.