Increasing national exports during the crisis
Increasing national exports during the crisis
Monetary conditions are a major factor in the growth of exports and imports in Indonesia.
Exports from both the oil and gas sector and the non-oil and gas sector for this year's January to April quarter were worth US$16.26 billion, a decrease of $1.9 billion from the same period last year. Non-oil and gas exports alone, however, made up $13.48 billion for this quarter, up from $12.35 billion from the same period last year.
"So, considering the country's monetary situation, the 9 percent growth rate in the non-oil and gas sector is quite acceptable," said Dr. Muchtar, chairman of the National Agency for Export Development (BPEN).
On the other hand, Muchtar said, the economy's total imports for the first quarter totaled $9.08 billion -- a 30 percent decrease compared to last year's $14.2 billion for the same period. The non-oil and gas sector alone accounted for $7.97 billion for that quarter -- down 70 percent for the same period last year, he said.
This means, he said, that the significant decrease in imports and the increase in exports resulted in a trade surplus of $5.5 billion over the quarter, primarily thanks to the non-oil and gas sector.
Currently, Indonesia's biggest importers are Japan and the United States, taking in 28 percent, while Singapore accounts for 15 percent and the Netherlands, Hong Kong, Malaysia and China are responsible for most of the remainder.
Muchtar said that in evaluating economic problems related to the country's growth of exports and imports, the condition of the country's currency, the rupiah, should be taken into account when looking at the real sector. But the import and export industry, he said, was not widely influenced by such conditions, especially for products not dependent on imported materials.
Muchtar said that in promoting exports, the industry should be aware that becoming competitive is a key to success. Companies should compare their products to similar ones made by competing firms in order to evaluate their competitiveness in the market.
"We shouldn't take it for granted that we will be successful when entering a market since there are probably other products which are better," he said.
"Nevertheless, strong competition cannot automatically guarantee that our products will be successful. We have to evaluate the situation to see if any tariffs and other hurdles hamper our sales capabilities."
He stressed the need for the government to address such hurdles.