First-quarter export confidence index down<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The country's export confidence index in the first quarter of
\n2003 took a nosedive to -3.0 from 10.0 in the fourth quarter of
\n2002, as many companies missed their revenue targets, a survey
\nreported.<\/p>\n
Carried out by courier service DHL and consultancy firm Castle
\nAsia, the survey noted that the short-term confidence index level
\nwas the lowest since the survey started in early 2002, and that
\nmore than 50 percent of exporters missed their revenue targets
\nduring the first quarter.<\/p>\n
\"However, many companies expect this decline to be short-
\nlived, with 58 percent still expecting to meet their annual
\nrevenue targets for 2003,\" the survey said, the results of which
\nwere provided to The Jakarta Post late last week.<\/p>\n
More than 50 percent of exporters believed that the
\nappreciation of the rupiah against the U.S. dollar affected
\nexport sales, while 56 percent said the cost of raw materials was
\nanother major factor.<\/p>\n
\"Their exports become uncompetitive at an exchange rate
\nstronger than Rp 8,500,\" it said. Around 40 percent of
\nrespondents expected an exchange rate of between Rp 8,500 and Rp
\n9,000 at year's end, while 37 percent expected a rate of between
\nRp 9,000 and Rp 10,000.<\/p>\n
In regards the rising cost of raw materials, 40 percent of
\nrespondents expected an 8 to 10 percent cost increase, 23 percent
\npredicted an 11 to 13 percent increase and 33 percent expected a
\nmaximum increase of 8 percent.<\/p>\n
Apart from the exchange rate and the cost of raw materials, 33
\npercent of exporters believed that unstable international
\npolitical and economic conditions had an obvious impact on sales,
\nwhile 77 percent deemed domestic political conditions an
\nimportant factor.<\/p>\n
In dollar terms, 58 companies expected export prices to remain
\nstable for the next three months.<\/p>\n
Southeast Asia (excluding Singapore) remains the main export
\nmarket, with 57 percent of surveyed firms exporting to the
\nregion. Other important markets include Western Europe, Japan,
\nSingapore, the Middle East and North America.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/first-quarter-export-confidence-index-down-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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