ABSTRACT
Our chapter analyses how coronavirus disease (COVID-19) affects Indonesia’s exports and imports, in terms of both volume and value. We use monthly trade data at the Harmonized System (HS) eight-digit level from January 2017 to December 2020 and adopt fixed effects and difference-in-differences approaches. The findings show that COVID-19 lowers the export volume by 10.7% (export value by 13.4%). At the same time, COVID-19 reduces the import volume by 16.42% (import value by 25.9%). Analysing the causes of decreases in Indonesia’s trade due to COVID-19 will shed light on the origins of the drop in trade and will help design appropriate policy responses to enhance trade for a swift recovery of the Indonesian economy.
