Businesspeople unperturbed by China's moves<\/p>\n
Tony Hotland, Jakarta<\/p>\n
Despite the government's concerns, some domestic industry
\nplayers remain calm over China's decision to slow down its
\neconomy, saying the move would have a negligible -- if any --
\nimpact on their exports.<\/p>\n
State-owned firm PT Krakatau Steel -- the country's largest
\nsteel maker -- said that China's move would effect its sales, as
\nit has been shifting attention to other markets.<\/p>\n
\"Last year, China was one of our main markets, but the market
\nwas not competitive in the last few months. We're now focusing on
\nthe United States, Europe, and Japan,\" company marketing director
\nKemal Masduki told The Jakarta Post over the weekend.<\/p>\n
\"Besides, we've always relied on the domestic market as some
\n80 percent of our products are sold here. We have a good
\nautomotive industry,\" Kemal added.<\/p>\n
He said those markets offered prices of up to US$20 to $30
\nhigher than China's. Steel produced by Krakatau is sold at $550
\nto $600 per kilogram on the international market.<\/p>\n
Last year, Indonesia's steel exports to China rose by a
\nwhopping 135 percent to US$114.07 million, from $48.29 million,
\naccording to the Indonesian trade attache in China.<\/p>\n
According to Kemal, Krakatau Steel exported over 30 tons of
\nsteel per month to the world's most populous nation last year.<\/p>\n
Kemal's view is shared by executive director of the Indonesian
\nRubber Producers Association (Gapkindo) Suharto Honggokusumo.<\/p>\n
\"China isn't our traditional market since it largely imports
\nrubber for its huge automotive industry -- to make tires -- from
\nThailand and Malaysia. So, I don't think it (China's move) will
\nhave a huge impact on us,\" he said.<\/p>\n
Last year, Indonesia's rubber exports to China were around
\n100,000 tons, well below Thailand's 600,000 tons and Malaysia's
\n250,000 tons.<\/p>\n
Indonesia's traditional markets for rubber are the U.S. and
\nJapan.<\/p>\n
China has taken a string of measures to slow down its economy
\n-- which has been growing by more than 9 percent over the past
\nfew years -- to prevent it from overheating and making a hard
\nlanding. It has ordered no approvals for new steel, aluminum, and
\ncement projects, and reviewed nationwide property projects, such
\nas commercial offices, golf courses and shopping malls.<\/p>\n
The move has caused worries among Asian countries, which have
\nincreasingly become dependent on China. Minister of Finance
\nBoediono also expressed concerns, saying it could impact on the
\ncountry's exports.<\/p>\n
China is Indonesia's fourth largest export destination after
\nthe U.S., European Union, and Japan. According to the office of
\nthe Directorate General of Customs and Excise, Indonesia's
\nexports to China reached $3.85 billion last year, while the
\nIndonesian embassy in China put the figures at $5.75 billion.<\/p>\n
Chairman of the Indonesian Palm Oil Producers Association
\n(Gapki) Derom Bangun also said that China's move would not have
\nany adverse impact on Indonesia's crude palm oil (CPO) exports.<\/p>\n
\"Most of our products are for consumption purposes; only a
\nlittle are for industries. We project bigger exports of palm oil
\nto China this year,\" Derom said.<\/p>\n
China is Indonesia's second largest importer of CPO after
\nIndia. In 2003, total CPO exports to China were about 500,000
\ntons, while up to 700,000 tons are projected to be exported this
\nyear.<\/p>\n
Exports to China by commodities in first quarter of 2004<\/p>\n
Commodity Value (US$)<\/p>\n
Pulp and paper 102.89 million
\nChemical organics 94.19 million
\nVegetable oil 65.66 million
\nElectric machinery 48.88 million
\nWood and cork 28.43 million
\nRaw and synthetic rubber 25.38 million
\nNon-iron metal 15.15 million
\nTextile fibers 8.99 million
\nFish, shellfish 3.19 million
\nShoes and footwear 0.96 million<\/p>\n
Source: The Ministry of Industry and Trade<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/businesspeople-unperturbed-by-chinas-moves-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }