2001 export target hard to meet: BPEN

2001 export target hard to meet: BPEN

JAKARTA (JP): The National Agency for Export Development
(BPEN) said that Indonesia's 2001 non-oil and gas exports would
fall short of the target of US$49 billion (Rp 465 trillion) due
to an expected fall in demand from the main buyer, the United
States, following terrorist attacks on the country.

BPEN's head Gusmardi Bustami said the U.S. would spend a lot
of money on restoring the massive losses and damage caused by the
terrorist aerial attacks on the country's financial center, the
World Trade Center and defense headquarters, the Pentagon.

The U.S. would cut spending on consumption as it focused on
improving its defense and security systems and bailed out the
industries impacted by the terrorist attacks, including the
airline industry, he said.

He further predicted the U.S. would also cut its investments
abroad.

"It will be difficult for us to reach the target as the U.S.
will prefer to earmark its funds for domestic recovery rather
than investments abroad," Gusmardi told reporters following a
media briefing jointly held by the Indonesia-Netherlands
Association (INA).

Initially, the government set a 7.5 percent growth in non oil
and gas exports on the back of astounding growth of 23 percent in
export earnings last year. But, it later scaled back the target
to between two and three percent due to the economic slowdown in
Indonesia's export destinations, including the U.S., Japan, and
Singapore.

Exporters further revised down the export targets following
the U.S. terrorist attack.

Gusmardi is among the first governmental officials to
officially warn of the impact of the U.S. attack on the country's
exports, but he did not specify the extent of the impact.

Gusmardi said the country's non-oil and gas export earnings
slid by two percent to $27 billion in the first seven months of
the year, compared to the corresponding period in 2000.

Gusmardi said Indonesia's exporters were seeking to penetrate
new markets for their products to make up for the shortfall in
orders from its traditional export markets.

With regard to exports to the Netherlands, INA's director
Elmar Bouma said Indonesia's exports to the Netherlands fell by
11 percent to $629 million in the first five months of this year.

Indonesia's exports to the Netherlands stood at $1.8 billion
in 2000.

Bouma said the Dutch government would send experts to advise
Indonesian exporters on how to improve their management in
compliance with requirements set by the Netherlands and other
European markets.

"Our experts will be available at BPEN's training center by
the end of this month. Local exporters may benefit from them on
how to comply with standards required by buyers in the
Netherlands and European countries," he said.

Gusmardi earlier said the agency planned to reopen its export
promotion center in Los Angeles and Dubai, the capital of the
United Arab Emirates, in November, to seek alternative markets.

Gusmardi said Los Angeles would become a gateway to U.S.
neighboring countries such as Mexico and Canada, while Dubai
would be a gateway to the Middle East.

The agency used to have 13 trade centers worldwide, located in
Dallas, Los Angeles, New York, Mexico City, Hamburg, London,
Rotterdam, Budapest, Baghdad, Dubai, Jeddah, Osaka and Sydney.
All the centers were closed in July 1998 following the economic
crisis.

The Osaka center became the first to resume operations when
the agency reopened it in December last year.(dmr)