Financing urged for exporters
Financing urged for exporters
JAKARTA (JP): The government should provide more export
financing incentives to drive sagging non-oil exports, an
official said.
Chairman of the National Agency for Export Development Rudy
Lengkong said last week that Indonesia is far behind other
countries with the same level of development in providing export
financing facilities to exporters.
"I don't see better prospects for Indonesian exports unless
the government is willing to provide more financial facilities
for exports.
"It seems to me that the government provides more financial
facilities to developers," Lengkong said after signing a
memorandum of understanding with the Pemberitaan Angkatan
Bersenjata news agency.
A number of Indonesia's prime exports declined significantly
last year. Textile and textile related products, which rank first
among other products and contributes 15 percent to the country's
total export earnings, declined to US$5 billion last year from
$6.1 billion in 1993.
Export revenues from plywood fell by 8.4 percent during the
January-October period of last year to US$3.49 billion. Exports
of wood products, mostly plywood, account for almost 14 percent
of Indonesia's total exports.
Minister of Trade Satrio B. Joedono commented, before
attending a limited cabinet meeting on the economy last week,
that the fall in exports of prime products resulted from, among
others, the emergence of new competitor countries like Vietnam,
China, India, Turkey and Pakistan.
The minister noted that the government is repositioning on a
number of primary exports which recorded a significant decrease.
"We will position ourselves among our competitors and then
figure out how to face the new and tough competition," Joedono
said.
Lengkong suggested that the government change its export
strategy because a number of competitors have been able to grab
Indonesia's share of the market.
"If we don't change our export strategy, we will be left
further behind," Lengkong stated.
He contended that Vietnam and China are a step ahead in
providing export financing facilities, including long-term
credits, special credits for export-oriented companies and export
credits.
He also suggested that ministers conduct more trade missions
overseas and that the government build more promotion centers
abroad. Currently Indonesia has 13 overseas promotion centers, as
compared to South Korea's 79 centers, Malaysia's 29 centers and
Singapore's 20 centers. (rid)