Application of Singular Spectrum Analysis for Predicting Indonesia’s Total Export Value

Abstract

Forecasting export data presents unique challenges due to seasonal fluctuations and complex global economic dynamics. Inaccurate forecasts may lead to misguided economic policies, particularly in the export sector, which plays a critical role in national economic growth. This study aims to forecast the total export value of two major sectors in Indonesia from January to December 2024 using the Singular Spectrum Analysis (SSA) method. Forecasting is essential in supporting economic policy planning and strategic decision-making. SSA is chosen for its ability to decompose time series data into interpretable components such as trend, seasonality, and noise. The forecasting model's performance is evaluated using the Mean Absolute Percentage Error (MAPE), which provides an intuitive accuracy interpretation in percentage terms. The optimal parameter for SSA was found at L=28L = 28L=28, yielding a MAPE of 16.63%, indicating good forecasting accuracy. The forecasted export values show that the highest export is expected in December 2024 (USD 39,578.67 million), and the lowest in January 2024 (USD 21,689.14 million). These findings suggest that SSA is effective in forecasting economic time series data, particularly Indonesia’s export values. This study contributes to the practical application of SSA in economics and serves as a reference for future research and policymakers in formulating export strategies.