Indonesian exports promising: Lehman<\/p>\n
JAKARTA (JP): Global investment bank Lehman Brothers said
\nyesterday that Indonesia's export picture is \"reasonably
\nreassuring and expected to brighten in the coming months\" on the
\nback of \"vibrant\" growth in a number of industries.<\/p>\n
In a report made available yesterday, Lehman's assessment is
\ncontrary to the popular opinion that the recovery in exports
\nsince late 1993 has been soft and a cause for some concern.<\/p>\n
Lehman predicts that Indonesia's nominal merchandise exports
\nshould expand at a rate of around 16 percent per annum, while
\nnominal merchandise imports will not exceed 15 percent by late
\n1996, keeping the current account deficit more or less stable as
\na percentage of the gross domestic product.<\/p>\n
It said the growth of some industrial exports and foreign
\ninvestment approvals, combined with recent corrective measures
\ntaken by the government, are key factors in the improving export
\npicture.<\/p>\n
\"While exports of Indonesia's two leading export items --
\ngarments and textiles, and plywood -- have been plagued by
\ndifficulties, their relative importance in total exports may be
\ndiminishing,\" the report said, quoting Miron Mushkat, chief
\neconomist for Lehman Brothers Asia-Pacific.<\/p>\n
Another factor which should contribute to an increase in
\nforeign investment is the government's revamping of the foreign
\ninvestment code and liberalization of the tariff structure, both
\nof which were introduced after the deceleration in export growth
\nand steep appreciation of the Japanese yen.<\/p>\n
\"These corrective measures go along way toward addressing
\ninvestor concerns and improving the investment climate. The
\napproval figures for last year for the imports of the capital
\ngoods bear this out, and it is only a matter of time before that
\nshow of strength translates into significantly greater momentum
\non the implementation front,\" explained Mushkat.<\/p>\n
Approval figures for last year stood at US$24 billion, with
\napprovals for the first four months of the current year at $16
\nbillion.<\/p>\n
\"The tariff restructuring package has eliminated some of the
\nuncertainty facing local manufactures and the suppliers of
\ncredit, both of whom may now be more willing to commit capital to
\nlong-term domestic projects following its introduction,\" he said.<\/p>\n
Mushkat concluded: \"One is tempted to argue that, given the
\ncircumstances, the persistently high risk premiums attached to
\nIndonesia's financial assets should shrink.\"(31)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesian-exports-promising-lehman-1447893297",
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