Electronics exports jump 81% this year

JAKARTA (JP): Director general of metal, machinery, electronics, and various other industries Agus Tjahajana said that the country's electronics exports rose 81 percent this year and was set to exceed textile in contributing to the country's export earnings.

Agus said the export of textile products reached US$7.5 billion in value, an increase of 8.9 percent from 1999.

It was followed by electronics, which recorded a significant rise to $7 billion in export value this year, an increase of 81 percent from the previous year, he said.

"Exports of electronics may exceed that of textiles in several years time," Agus said.

Metal exports rose 19.7 percent to $2 billion this year and is projected to increase 6 percent to $2.1 billion next year.

Machinery product exports increased 34.4 percent to $1.1 billion this year and is projected to increase 17.8 percent to $1.3 billion next year.

Transportation mean exports rose 7.6 percent to $899 million this year and is expected to increase 3 percent to $926 million next year.

Agus said the government expects electronics exports to increase 15 percent to $8.1 billion next year, while production to increase by 17.2 percent to Rp 91.1 trillion from Rp 79 trillion this year, Agus said.

Chairman of the Indonesian electronic producers Rachmat Gobel said separately that the government's target for next year was quite reasonable as most companies had already intended to step up exports in the new year.

"At least $4.7 billion could be expected from eight electronics producers from Japan and South Korea," he was quoted by Bisnis Indonesia as saying.

Rachmat said that the Matsushita Group had targeted a 24 percent increase of its exports in 2001 to $1.2 billion, and PT Epson Industri Indonesia to $1 billion from $650 million this year.

Samsung Electronics Indonesia expects to increase exports to $800 million next year up from $600 million this year, while LG Group has targeted to increase its exports to $600 million, he said.

Toshiba Group, Sanyo Group, and Sony Electronics Indonesia all expect to increase exports to $300 million, while Aiwa anticipates $200 million worth of exports next year, Rachmat said.

ASEAN (Association of the Southeast Asian Nations) countries absorb 23.8 percent of Indonesian textile, electronic, metal, and machinery products, Agus said, but he did not reveal where the rest were exported.

"Except for automobile products, Indonesian products have a strong competitive edge in ASEAN markets," Agus said.

Exports of textile, electronic, metal and machinery products to ASEAN countries reached a peak of $4.5 billion in 1998 from $3.7 billion the previous year. It slid back down to $3.6 billion in 1999. (tnt)