Exports to grow 7% next year, thanks to new buyers

Exports to grow 7% next year, thanks to new buyers

Sari P. Setiogi, The Jakarta Post, Jakarta

The government painted on Wednesday a brighter outlook for the
country's exports for next year, predicting exports to grow by 7
percent, higher than this year's growth target of 5 percent.

"I am optimistic that we will reach the 5 percent growth
target this year and even 7 percent growth in 2004," Minister of
Trade and Industry Rini M.S. Soewandi told reporters following
the opening ceremony of the 18th Resource Indonesia (PPE) 2003 on
Wednesday.

Rini said she was optimistic after seeing Indonesia's export
performance over recent months, which was on the rise thanks to
demand from Indonesia's nontraditional markets and the rise in
the export of new commodities.

The Central Statistics Agency (BPS) has announced that
Indonesia's non-oil and gas exports rose 5.7 percent in the first
eight months of the year to US$31.47 billion.

In the corresponding period last year, exports grew 3.12
percent to $29.77 billion year-on-year.

Rini said electronics, textiles, furniture and paper were the
largest contributors to the country's exports this year.

"Electronics exports are expected to reach $7 billion this
year, while textile exports are seen to reach $6.8 billion," said
Rini.

Buyers from nontraditional markets have made a significant
contribution to the country's export performance this year.

"Nontraditional markets, such as United Arab Emirates, Africa,
China and Eastern Europe, have great potential and are in need of
Indonesian products," she said.

Previously, Indonesian exports were focused on traditional
markets such as the United States, Japan and Western European
countries.

Rini said what was interesting was that exports of
handicrafts, fishery products, cacao, glassware and ceramic
products had been on the rise as their quality had improved.

Rini also said an exhibition such as PPE would give a
significant contribution to the country's exports as it helped
potential foreign buyers to find what they needed at one
location.

Separately, chairwoman of the National Agency for Export
Development (BPEN), Diah Maulida, told The Jakarta Post this
year's PPE was expected to record about $80 million worth of
export deals, a 10 percent increase from $72.4 million recorded
in the 2002 PPE.

A palm wax candle exporter, Prananto Nugroho, from PT Wax
Industri Nusantara, confirmed that the fair was quite helpful for
Indonesian companies, citing that of the company's 10 existing
buyers, seven first approached the firm during the past PPE
forum.

The 2003 PPE is open from Oct. 15 to Oct. 19 at the Jakarta
Fairground (PRJ), Kemayoran, Central Jakarta.

About 1,200 companies are participating in the expo,
displaying cosmetics, consumer goods, footwear, furniture,
agricultural and mining products, handicrafts and textiles at a
total of 1,505 stands.

Potential buyers come from about 100 countries, including
Japan, Algeria, Iran, Pakistan, Saudi Arabia, South Africa and
Eastern Europe.

Separately, Husin Bagis, commercial and industrial attache at
the Indonesian Embassy in Japan, said a Japan trade mission of 49
people had came to see the PPE, looking for furniture, corn,
gypsum and the medicinal fruit mengkudu (Morinda citripolia or
java noni), which is believed to be able to cure diabetes.