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.