Govt export target gets cautious response<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
A relatively weak currency and a likely recovery in the global
\neconomy next year could mean the government's 5 percent growth
\ntarget for non-oil and gas exports is realistic, economists said,
\nbut added that much depended on a recovery in the U.S. economy.<\/p>\n
Bank Mandiri chief economist Martin Panggabean told The
\nJakarta Post that sales of non-oil and gas exports in 2002 would
\nbe able to grow by 5 percent.<\/p>\n
"The (5 percent) target should not be too hard to meet because
\nour products remain competitive under a weak rupiah, while
\ndemands are expected to rise on the back of a probable speedier
\nrecovery among developed countries," Martin said over the
\nweekend.<\/p>\n
He was responding to the government's non-oil and gas export
\ngrowth target of 5 percent next year, which Minister of Industry
\nand Trade Rini Soewandi said last week was a feasible target.<\/p>\n
Boosting sales, he said, depended on economic recoveries in
\nthe U.S. and Japan, both of which are Indonesia's largest export
\nmarkets.<\/p>\n
As for the rupiah, the currency's current levels have made
\nIndonesia's export commodities more price competitive, he added.<\/p>\n
Export sales in September grew by 4.21 percent after falling
\nfor two straight months since June.<\/p>\n
Sales for that month totaled US$5.1 billion, with non-oil and
\ngas exports sales reaching $3.9 billion, or close to a 4 percent
\nrise compared to the month before. In the nine months to
\nSeptember, exports hit $43.7 billion, which is, however, $2.78
\nbillion less than sales over the same period last year.<\/p>\n
Still, the outlook could be improving considering last week's
\nreport that the U.S. economy grew substantially faster during the
\nthird quarter.<\/p>\n
The U.S. gross domestic product (GDP) grew by a 3.1 percent
\nannual rate during the third quarter, compared to 1.3 percent
\nduring the previous one. The GDP measures the total value of
\ngoods and services produced by a country in a year.<\/p>\n
However, the latest data on massive job cuts in the
\nmanufacturing sector suggest that the faint recovery in the U.S.
\nmight be weakening instead.<\/p>\n
Citibank economist Anton Gunawan, while citing the 5 percent
\ntarget as realistic, warned of potential problems arising from
\nhigher risk premiums on shipping in and out of the country.<\/p>\n
This higher risk premiums were imposed by the international
\nreinsurance market following the Bali bombing.<\/p>\n
Anton argued that a more expensive premium would eventually
\ninflate the price of Indonesian export goods, making them less
\ncompetitive.<\/p>\n
"The government has to watch out, although I don't think the
\nimpact will be all too damaging to our overall export sales,"
\nAnton said.<\/p>\n
Following the Bali blasts, Indonesia was included on a list of
\npotential war zones, resulting in higher risk premiums for every
\nship traveling in and out of the country.<\/p>\n
Export sales contribute to about 9 percent of the nation's
\neconomic growth, while the other growth engines are investment
\nand domestic consumption.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-export-target-gets-cautious-response-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}