Govt to push exports for 15 products
Govt to push exports for 15 products
Fitri Wulandari, The Jakarta Post, Jakarta
The government has selected 15 priority export products in a
bid to help achieve this year's non-oil and gas export growth
target of 7 percent.
Coordinating Minister for the Economy Dorodjatun Kuntjoro-
Djakti said on Wednesday that the National Export Team also set
action plans in order to boost the export of the selected
products.
The 15 export priority products include furniture, processed
wood, coffee, cocoa and cocoa products, rubber and rubber
products, textiles and textile products, machinery and electronic
equipment and footwear.
"If we want (our economy) to grow by 5 percent, the key is
export. We have to penetrate the international market,"
Dorodjatun told reporters after a meeting with businessmen to
discuss the export target.
The economy during the past couple of years had been growing
at a meager rate of around 4 percent, which has been mainly
driven by domestic consumption amid weak export and investment
activities. The government projected the economy to grow by 4.8
percent this year.
The country's exports stood at US$61 billion last year.
"On average, export value reached $5 billion a month last year
which is the same as the pre-crisis level," he added.
In order to boost the exports of the priority products, the
government would intensify market penetration efforts and help
improve the competitiveness of the products.
In the area of market penetration, activities include seeking
new markets by signing trade deals with 22 countries; sending
trade missions to 15 countries; and joining 40 trade exhibitions
in 26 countries.
The government selected cocoa, textiles, edible fat and oil to
be promoted in selected countries. Cocoa to South Africa and
China, textiles to the United States, food products to Peru and
Equador, fat and oil products to Turkey and China.
With regards to improving competitiveness, the government
plans to improve the country's port service, ease taxes, and
ensure the smooth supply of raw materials.
On taxes, the government plans to exempt raw materials such as
cacao, coffee, fish, woods and cotton from value-added tax.
The government also plans to improve port management to help
facilitate export and import activities.
Meanwhile, Sofyan Wanandi, the chairman of the Indonesian
Employers Association (APINDO) said businessmen had yet to agree
with the government on the export target set for the priority
products.
He said the export target was deemed too high, considering
that many companies were still facing various problems.
For example, the government set the target for cacao exports
to increase by 25 percent this year. But, Sofyan said,
businessmen considered a 15 percent increase more feasible.
Priority products
No. Products Increase Value 2003 Value 2004
(in US$ billion)
1. Furniture 8% 1.619 1.748
2. Processed wood 26% 3.16 3.981
3. Coffee 30% 0.51 0.663
4. Cacao & cacao products 25% 0.629 0.786
5. Rubber & rubber products 23% 1.883 2.315
6. Textile & textile products 5% 7.033 7.385
7. Machinery & electronics 4% 5.642 5.900
8. Steel, machinery, auto parts 7% 4.443 4.750
9. Pulp 11% 0.731 0.809
10. Paper 8% 1.939 2.094
11. Organic Chemicals 8% 1.213 1.314
12. Footwear 6% 1.216 1.290
13. Fish & Shrimp 8% 1.489 1.608
14. Fat & Oil 9% 2.46 2.68
15. Plastic materials 6% 1.072 1.133
Source: National Export Team