Export to grow 10% for 2006

Anissa S. Febrina, The Jakarta Post/Jakarta

Preferring to err on the conservative side, the government has set its export growth target at 10 percent next year, a minister says.

"As of August this year, our exports grew by between 13 percent and 14 percent after several statistical adjustments had been made," Minister of Trade Mari Elka Pangestu said on Friday.

She estimated that 2006's full year export growth would reach 10 percent or more.

However, there were several preconditions that would be required for the target to be met, such as the realization of investment plans and reductions in the high cost of doing business here, she said.

Previously, the Central Statistics Agency had reported that Indonesia's exports for the first semester of this year stood at US$47.58 billion, a 25.85 percent increase over the same period last year. The government's export growth target for this year had been set at 10 percent over last year's export value of $69.71 billion.

According to the trade ministry's research and development agency, the calculation method employed had shifted to an on-line system so that the increase should have been lower at around 13 percent to 14 percent.

"I am concerned that the world market will grow more slowly due to higher oil prices. If the market does not grow, we will have to intensify our promotion work to take share from our competitors," she said.

Indonesia would shift its export focus from the Middle East to the African market next year, Mari added. "Africa is a prospective market, especially South Africa," she said.

Basic commodities and manufactured products would continue to be the country's main exports next year.

"We will try to increase investment in the footwear industry. We will also have potentially better market conditions in the textile sector as China is currently facing export quotas in the American and European markets," Mari said.

Other manufactured goods with good prospects were automotive components and electronic goods.

An exports expo earlier this month booked $104 million in sales, with furniture and handicrafts dominating the orders.

Indonesia's exports hit a record high last year, reaching $69.71 billion, up 11.49 percent compared to 2003. This was mainly attributable to strong sales of non-oil and gas commodities and goods, including palm oil, electronics goods, clothing, coal and tin.