Luhut downplays impact of U.S. economic growth<\/p>\n
JAKARTA (JP): Minister of Trade and Industry Luhut Pandjaitan
\nplayed down on Wednesday the impact of the slowdown in the U.S.
\neconomy on Indonesia's exports.<\/p>\n
Speaking at a hearing with the House of Representatives (DPR),
\nLuhut said the impact of the U.S. economic slowdown would be
\nminimal because most of goods exported to the country comprised
\nprimary consumption products such as textiles, garments and
\nshoes.<\/p>\n
\"Normally, the demand for such products is not affected by an
\neconomic slowdown,\" he told House Commission V for industry and
\ntrade affairs.<\/p>\n
The minister was optimistic that the country's exports would
\ncontinue to increase despite the contraction in U.S. economic
\ngrowth, which according to analysts, could trigger a global
\neconomic slowdown.<\/p>\n
Indonesia's exports dropped by 5.66 percent to US$4.84 billion
\nin January from $5.13 billion in December due to a drop in orders
\nfrom main buyers.<\/p>\n
According to the Central Bureau of Statistics (BPS), export
\nearnings in January only declined in the non-oil and gas sector,
\nwhich fell by 10.37 percent to $3.50 billion compared to the
\nprevious month.<\/p>\n
But if it is compared to the corresponding period last year,
\nthe January exports showed an increase of about 10 percent from
\n$4.39 billion. In the same period, non-oil and gas exports alone
\nrose by 7 percent to $3.5 billion from $3.25 billion.<\/p>\n
Gusmardi Bustami, the head of National Agency for Export
\nPromotion (BPEN), said exports to the United States still
\nrecorded an increase in January this year as compared to the same
\nmonth last year<\/p>\n
He did not provide a breakdown for January's exports but said
\nthat the fall in the volume of exports between December and
\nJanuary was seasonal as most buyers cut their orders at the start
\nof the year.<\/p>\n
\"The demand will surge again in April as orders usually rise
\nto meet higher demand for the summer season,\" Gusmardi explained.<\/p>\n
Luhut said that the government had also anticipated the
\ndownturn by boosting the export promotion drive in the U.S. and
\nother industrialized countries.<\/p>\n
This year, the government through the BPEN plans to attend
\nforty-six international exhibition involving exporters, up from
\ntwenty-six exhibitions last year.<\/p>\n
However, exporters will have to diversify their markets to
\nother countries in East Asia, South America and Africa so as to
\nincrease exports, the minister said.<\/p>\n
Last year, Indonesia exported a total of $62.6 billion, of
\nwhich non-oil and gas exports rose by 22.91 percent to $47.78
\nbillion, while oil and gas exports jumped by 45.39 percent to
\n$14.24 billion.<\/p>\n
For non-oil and gas exports, the main destinations are the
\nU.S. with $7.9 billion, Japan ($7.4 billion), Singapore ($5.8
\nbillion), Malaysia ($1.8 billion), China ($1.77 billion), South
\nKorea ($1.47 billion), Germany ($1.43 billion), Taiwan ($1.37
\nbillion), and Australia ($903.4 million).(05)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/luhut-downplays-impact-of-us-economic-growth-1447893297",
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