Export to grow 10% for 2006

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.