The government estimated that Indonesia’s trade balance in September 2014 will enjoy a surplus of about USD 100 million. However, even if trade balance experienced a deficit, the estimated value is around USD 100 million. This statement was made by the Minister of Trade, Muhammad Lutfi, in Jakarta, on Monday (September 15). “In September 2014 as well in September of the previous year, there was empirically a sluggishness of imports, so it is estimated that imports will not be high. Like in April, imports are usually high so it can be said that these months, it is only seasonal or temporary.
Thus, if from July to August there is a surplus of approximately USD million, this month I estimated that there was such a slight surplus, he said. The decrease in exports last month was due to the decline in oil palm exports from approximately USD 2.2 billion to USD 1.1 billion in the previous month. With the world economic situation, The fed plans to raise interest rates, and commodity players reportedly will release funds. This occurs because of the high cost of administration, thus causing the fall of commodity prices. However, this only reactionary, so that it is expected that by the end of September/ October, the status of the condition will be obvious. Thus, it is expected to improve the position of commodity prices. Because commodity is a supply and demand matter, so it’s not a problem if the owner of the commodity has or does not have funds.
Lutfi revealed that there is still a number of homework missed by Indonesia for the last decade. This causes Indonesia, in binding a number of trade agreements with other countries, not to obtain benefit, like the ones enjoyed by other countries. “So far, Indonesia still relies on the shoe industry, footwear, and textile industry. While China, which 10 years ago was together with Indonesia in setting labor wages, is now assembling electronic products and building network. Finally, China already has Huawei and ZT as mainstay of electronic products.
So far, Indonesia did not build infrastructures, while the middle-class population continues to increase.
That is why Indonesia should be able to escape the “trap of the middle class,” by building infrastructures, such as power plants as well as strengthening the telecommunication industry. This will help Indonesia achieve its growth exponentially, so it is not just being defensive as it is today, “he said. Infrastructure issues were also mentioned by the Honorary President of Notre Europe, Pascal Lamy. A number of problems associated with Indonesia’s competitiveness include, among other, transportation problem, infrastructure, and logistics efficiency, this includes energy transportation, seaports and airports. These are all closely related to supply factor in the global supply chain.
Facing the ASEAN Economic Community (AEC) in 2015, the Indonesian market actually does not deed to be protected, but should be developed, and Indonesia should continue to establish trade diplomacy at the international level. In addition, in the field of industry, what needs to be done is increasing global supply chain to follow the current trend, with joint production and mutual benefit.
In line with this, economist of the Economic Research Institute for ASEAN and East Asia, Lili Yang Ing, pointed out that in facing the formation of AEC in 2015, by making it as a production base where product, and this will be a capital network for its production. Currently, Indonesia is still widely known as a country that relies much on domestic market orientation. (E)
Business News - September 19, 2014