Jakarta (ANTARA News) - The Indonesian Chamber of Commerce and Industry (Kadin) has predicted Indonesia`s exports to the United States in the fourth quarter of 2008 may fall up to 20 percent from the previous quarter as a result of financial crisis.
"Exports to the US may fall 20 percent. The government and businessmen are trying to seek other markets for our exports," Kadin Chief MS Hidayat said on the sidelines of the chamber`s national coordination meeting on trade and distribution here on Thursday.
He said Indonesia could no longer rely on the US as the main market for its exports due to low demand. The US importers would likely renegotiate the prices of export commodities they had agreed upon with the Indonesian importers.
"We can no longer rely on exports to the US. The more the new markets we can find the better will be. Under these current circumstances, our exports to the US will no doubt fall. If we insist on exporting our products to the US they will renegotiate the prices of the commodities they are going to import," he said.
He said African countries particularly South Africa and other Asian countries were potential market for Indonesia`s exports.
"But we still have to compete with other ASEAN member states which are also eying the potential markets. All ASEAN member countries have the same policies. We will compete with Malaysia in marketing our export commodities in Africa," he added.
Indonesia`s non-oil/non-gas exports to the US plunged by 69.2 percent to US$1.12 billion in July 2008 from US$1.19 billion a month earlier.
In the January-July 2008 period, Indonesia`s non-oil/non-gas exports to the US stood at US$7.4 billion, accounting for 11.6 percent of its total exports over the period.(*)