Government to boost countertrade programs
Government to boost countertrade programs
Adianto P. Simamora, The Jakarta Post, Jakarta
The Ministry of Industry and Trade plans to seek more
countertrade deals in nontraditional export markets, in a bid to
increase export revenue and counter the economic slowdown in
developed nations.
Minister Rini MS Soewandi said the move was essential because
exports to traditional markets like the U.S., Japan and Europe
were expected to decline.
The government has targeted a 5 percent increase in non-oil
and gas exports this year to US$47 billion, from $45 billion last
year.
"I admit that it will be hard to meet the 5 percent growth
target this year given the global economic uncertainties. That is
why we need to boost the countertrade deals with non-traditional
markets to reach that target," Rini said during a meeting with
House of Representatives Commission V for industry and trade.
Rini said she was now in talks with her counterparts from
three countries -- Pakistan, India and Poland -- about the
possibility of setting up countertrade programs.
"We are now in intensive talks and we hope to soon sign the
(countertrade) deals," she said.
Indonesia and Russia signed a $192 million countertrade deal
in April, under which Indonesia will receive Sukhoi Su-27 and Su-
30 jet fighters and Mi-35 helicopters from Russia.
Russia in turn will receive some 30 agricultural commodities
and manufacturing products of equal value from Indonesia. The
commodities include textiles, coffee, rubber, chocolate, black
pepper, electrical appliances and fishery products.
Aside from the countertrade deals, the ministry also plans to
boost promotional activities in nontraditional markets such as
the Middle East, East European countries, Africa, Latin America
and East Asia to help raise export earnings.
"In October, for example, we will hold an expo in the United
Arab Emirates," Rini said.
Indonesia's major non-oil and gas exports are textiles,
footwear, timber-based products and electronics.
Indonesia's non-oil and gas exports during the first quarter
of this year increased by 9.4 percent to $11.17 billion, from
$10.17 billion in the same period of 2001.
Currently, the country's exports to nontraditional markets
account for about 8 percent of total exports.