JP\/12\/Exports<\/p>\n
Indonesia's 2001 exports to fall short of target: BPEN
\nby Damar Harsanto<\/p>\n
JAKARTA (JP): The National Agency for Export Development
\n(BPEN) said that Indonesia's 2001 non-oil and gas exports would
\nfall short of the target of US$49 billion (Rp 465 trillion) due
\nto an expected fall in demand from the main buyer, the United
\nStates, following terrorist attacks on the country.<\/p>\n
BPEN's head Gusmardi Bustami said the U.S. would spend a lot
\nof money on restoring the massive losses and damage caused by the
\nterrorist aerial attacks on the country's financial center, the
\nWorld Trade Center and defense headquarters, the Pentagon.<\/p>\n
The U.S. would cut spending on consumption as it focused on
\nimproving its defense and security systems and bailed out the
\nindustries impacted by the terrorist attacks, including the
\nairline industry, he said.<\/p>\n
He further predicted the U.S. would also cut its investments
\nabroad.<\/p>\n
\"It will be difficult for us to reach the target as the U.S.
\nwill prefer to earmark its funds for domestic recovery rather
\nthan investments abroad,\" Gusmardi told reporters following a
\nmedia briefing jointly held by the Indonesia-Netherlands
\nAssociation (INA).<\/p>\n
Initially, the government set a 7.5 percent growth in non oil
\nand gas exports on the back of astounding growth of 23 percent in
\nexport earnings last year. But, it later scaled back the target
\nto between two and three percent due to the economic slowdown in
\nIndonesia's export destinations, including the U.S., Japan, and
\nSingapore.<\/p>\n
Exporters further revised down the export targets following
\nthe U.S. terrorist attack.<\/p>\n
Gusmardi is among the first governmental officials to
\nofficially warn of the impact of the U.S. attack on the country's
\nexports, but he did not specify the extent of the impact.<\/p>\n
Gusmardi said the country's non-oil and gas export earnings
\nslid by two percent to $27 billion in the first seven months of
\nthe year, compared to the corresponding period in 2000.<\/p>\n
Gusmardi said Indonesia's exporters were seeking to penetrate
\nnew markets for their products to make up for the shortfall in
\norders from its traditional export markets.<\/p>\n
With regard to exports to the Netherlands, INA's director
\nElmar Bouma said Indonesia's exports to the Netherlands fell by
\n11 percent to $629 million in the first five months of this year.<\/p>\n
Indonesia's exports to the Netherlands stood at $1.8 billion
\nin 2000.<\/p>\n
Bouma said the Dutch government would send experts to advise
\nIndonesian exporters on how to improve their management in
\ncompliance with requirements set by the Netherlands and other
\nEuropean markets.<\/p>\n
\"Our experts will be available at BPEN's training center by
\nthe end of this month. Local exporters may benefit from them on
\nhow to comply with standards required by buyers in the
\nNetherlands and European countries,\" he said.<\/p>\n
Gusmardi earlier said the agency planned to reopen its export
\npromotion center in Los Angeles and Dubai, the capital of the
\nUnited Arab Emirates, in November, to seek alternative markets.<\/p>\n
Gusmardi said Los Angeles would become a gateway to U.S.
\nneighboring countries such as Mexico and Canada, while Dubai
\nwould be a gateway to the Middle East.<\/p>\n
The agency used to have 13 trade centers worldwide, located in
\nDallas, Los Angeles, New York, Mexico City, Hamburg, London,
\nRotterdam, Budapest, Baghdad, Dubai, Jeddah, Osaka and Sydney.
\nAll the centers were closed in July 1998 following the economic
\ncrisis.<\/p>\n
The Osaka center became the first to resume operations when
\nthe agency reopened it in December last year.(dmr)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jp12exports-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}