BPEN pessimistic on government's 2001 export target<\/p>\n
JAKARTA (JP): The National Agency for Export Development
\n(BPEN) said on Thursday the government's 2001 non-oil and gas
\nexport target of US$51.3 million would be difficult to meet given
\nthe weak export performance in the first five months of the
\nyear.<\/p>\n
BPEN chairman Gusmardi Bustami said non-oil and gas exports
\nbetween January and May decreased by 0.09 percent to $18.6
\nbillion, compared to the same period last year.<\/p>\n
\"Frankly speaking, it will be hard to achieve the non-oil and
\ngas export target for this year,\" he said during a media
\nconference on the preparations for the 2001 Export Products Expo,
\nor 2001 PPE.<\/p>\n
He said his pessimism was also based on the fact that export
\norders, which customarily are made six months in advance, were
\nnow mainly made between only one or two months in advance due to
\npolitical uncertainty and the country's security problems.<\/p>\n
The government has said it expects 2001 non-oil and gas
\nexports to increase by 7.5 percent to $51.3 billion from $47.7
\nbillion last year.<\/p>\n
But Gusmardi said the economic slowdown in the U.S. and
\npolitical instability at home had negatively impacted the
\ncountry's export industry.<\/p>\n
\"Non-oil and gas exports may increase but not by (7.5
\npercent),\" he added.<\/p>\n
Gusmardi said he hoped new President Megawati Soekarnoputri
\ncould bring stability to the country, an important element needed
\nto boost exports.<\/p>\n
\"If stability continue to exist, I have no doubt that the
\nrupiah will be stronger ... that's good for export industry,\" he
\nsaid.<\/p>\n
The rupiah has soared to a five-month high of about Rp 9,775
\nper U.S. dollar following the appointment of the country's new
\nPresident.<\/p>\n
Gusmardi said the stronger rupiah would help reduce exporting
\ncompanies' costs, because most of their raw materials and
\nmachinery were imported.<\/p>\n
For example, textile companies import 70 percent of their raw
\nmaterials, footwear firms 70 percent and electronics companies 80
\npercent, he said.<\/p>\n
He also hoped a more positive situation in the country would
\nbe followed by lower interest rates, which would enable companies
\nto repay debts and receive loans at more affordable rates.<\/p>\n
A turnaround in the U.S economy would also help Indonesia's
\nexports, he said.<\/p>\n
Meanwhile, Gusmardi said the 2001 PPE, which will be held from
\nOctober 24 to October 28 at the Jakarta Fairgrounds in Kemayoran,
\nhad received a positive response from both the country's
\nexporting firms and foreign buyers.<\/p>\n
He said about 1,191 producers and 879 foreign buyers had
\nconfirmed that they would take part in the expo.<\/p>\n
\"We're optimistic that 1,241 firms and 6,000 foreign buyers
\nwill participate in this expo,\" he said, adding about 4,800
\nbuyers took part at last year's expo.<\/p>\n
Companies at the expo will display such items as furniture,
\nhandicrafts, textiles, footwear, foods and beverages, and
\nleather, metal and rubber products.<\/p>\n
\"We expect that the transactions at this year's expo will
\nincrease by between 15 percent and 20 percent to $120 million
\nfrom $103 million last year,\" Gusmardi said.<\/p>\n
He guessed that furniture, handicrafts, wood products,
\nelectronics and leather products would dominate the transactions
\nat the expo.(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bpen-pessimistic-on-governments-2001-export-target-1447893297",
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