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.