Increasing Indonesian exports

Increasing Indonesian exports

Instability and the fall of the rupiah are major factors of difficulty in all business sectors, including export and import activities. The indicators of its condition are export values for the oil and gas and non-oil and gas sectors for January-April 1998, which totaled US$16.26 billion, down $1.9 billion for the same period in 1997.

Non-oil and gas exports increased $9.11 billion. "So, all things considered, the 9 percent growth rate in the non-oil and gas sector is quite acceptable," said Drs. Muchtar, MSc, former chairman of the National Agency for Export Development.

Imports for January-April 1998 totaled $9.08 billion, a 30 percent drop compared to the same period in 1997. The non-oil and gas import sector was $7.97 billion, down 70 percent from the same period in 1997. The decrease in imports and increase in exports resulted in a $5.5 billion trade surplus.

Muchtar said that the export sector is an open and prospective market. Exporters should be aware of competitiveness when entering the market because diversification of export-destination countries improves the export market share.

He said the quality of export products where raw materials are not imported should be improved as they are not so influenced by a crisis situation. This should be supported by quality human resources, and the government should be serious in eliminating any constraints from export growth activities.