Monday, 31 August 2009

Indonesia’s Export in Semester Two of 2009 Projected to Improve

Indonesia’s export was projected to improve within the next six months in line with the improvement of the world’s commodity prices.

Minister Mari Pangestu stated that Indonesia’s export in the second semester this year was projected to grow by minus 10% compared against the same period last year, which according to the data of the Central Statistics Board [BPS] was USD 66.62 billion.

Previously the BPS Statistics Board announced that Indonesia’s export growth by Semester I of 2009 was down by 28.94% to become USD 50.02 billion compared against eh same period of 2008.

According to the Minister of Trade, improvement of the worlds economy would augment commodity prices in the international market which would jack up Indonesia’s export.

“Commodity prices are definitely higher than that of the First Semester. The present tendency shows that commodity prices get better with the improvement of the world’s economy, and this was advantageous to us at the Second Semester. Export in the second semester is probably minus 10%”. This was disclosed by Minister of Trade Mari Elka Pangestu to Business News on Friday [7/8] at JCC Jakarta.

The trend of upgoing export had been going on since the early few months of Semster I 2009, as shown by the 1.32% increase in June 2009 to become USD 9.3 billion compared against total export of May 2009; total export of March 2009 was up by 20.84% to become USD 8.7 billion according to data of the Board of Statistics.

Indonesia’s export had been sliding down since October 2008, just one months after the beginning of global crisis. However, Indonesia’s share of which was only 32% of GDP was not as big as that of other neighbouring countries.

The global economic crisis had lowered demand and price of Indonesia’s export commodities like oil palm, rubber, textile and manufacture products.

Indonesia was the largest producer of oil palm in the world and the world’s second largest producer of rubber.

Secretary General of the Department of Trade : Export Might Recover in Years to Come
Indonesia’s export performance might recover in years to come. The Government expected that products of high added value and high local content would contribute significantly to recovery efforts.

Among the products were automotive components, including commodities like crude palm oil, kakap, and rubber.

“We are looking forward to recovery of export performance in the coming years, relying on commodities with high degree of added value. We expect good export performance in products of high local content, especially products of the creative industry” this was disclosed by Ardiansyah Farman, Secretary General of the Department of Trade to Business News on Friday [7/8] at the Convention Hall, Jakarta.
“Recovery of the International market would propel the progress of Indonesia’s export by middle of this year” Farman concluded.

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