Exporters fear increase in anti-U.S. sentiment may affect trade<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The U.S. strikes launched against Afghanistan
\nwill definitely cast a shadow over the country's export
\nperformance, with fears of growing anti-U.S. sentiment looming
\nlarge, exporters said.<\/p>\n
The hard-line Islamic Defenders Front (FDI) have threatened to
\nexpel foreign citizens in Indonesia and called on all Muslims to
\nunite for a holy war against the U.S. and lay siege to its
\nembassy in Central Jakarta.<\/p>\n
Indonesia has the world's largest Muslim population.<\/p>\n
Indonesian Footwear Association (Aprisindo) fears that the
\nactions by certain radical groups toward Americans and their
\nallies will further hurt the country's export prospects.<\/p>\n
\"It's slowing down (exports) already. There were a few deals
\nthat have been put on hold. Although they're relatively small
\norders, we know it could easily spread to bigger ones,\" Djimanto,
\nthe association secretary-general, told The Jakarta Post on
\nMonday.<\/p>\n
He warned the government that massive lay-offs could occur if
\nit failed to take precautionary measures against increasing, and
\npotentially violent, protests against U.S.-based companies in the
\ncountry.<\/p>\n
\"If these so-called \"sweepings\" against foreigners are not put
\nto an end then it is very likely that those companies will shut
\ndown their operations, at least on a temporary basis.<\/p>\n
\"But the effects of those (temporary closures) alone will be
\ntoo much for us to bear,\" he said.<\/p>\n
He also brushed aside prospects of increased income gained
\nfrom a higher exchange rate, saying that strengthening of the
\ndollar against the rupiah would bring higher production costs as
\nthe products also contain imported components.<\/p>\n
The United States is traditionally the country's largest
\nfootwear export destination. Last year, it consumed at least 40
\npercent of the country's total shoe exports, which were valued at
\nUS$1.7 billion.<\/p>\n
\"Only one day after the strikes (against Afghanistan), our
\nlocal production might well have already been affected because
\nseveral of our exporters are considering closing their factories
\ntemporarily, fearing that the situation will worsen,\" Indonesian
\nElectronics Association secretary-general Lee Kang Hyun told the
\nPost.<\/p>\n
He did not name the companies he was referring to.<\/p>\n
According to Lee, the country's electronics-based goods
\nexports last year totaled more than US$6 billion, 20 percent to
\n30 percent of which were sold in the United States market.<\/p>\n
\"And the obvious impact of the military action lays on the
\nmovement of the rupiah as that will determine our competitiveness
\nin the global market,\" he said.<\/p>\n
The rupiah closed at Rp 10,160 against the dollar on Monday,
\nreaching a three-month low and breaching the important level of
\n10,000 for the second time in two weeks.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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