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.