Indonesia sees decline in gas and non-oil exports
JAKARTA: Indonesia's trade minister said yesterday export volumes for non-oil and gas are set to fall 20-30 per cent this year from last year as global trade slows. Earlier this month, Trade Minister Mari Pangestu said Indonesia's non-oil and gas export growth target had been revised to below 4.3pc for this year. Yesterday she said the outlook was worse.
"Based on container flow for January-February, exports volume this year may decline by between 20 to 30pc.
Non-oil and gas exports are expected to fall," Pangestu said.
She said that exports of automotive products and electronics would be worst hit.
Car exports through the Jakarta International Container Terminal, the country's largest shipping terminal, fell to 9,391 units last month, from 13,000 units in December last year, Pangestu said, representing a decline of about 27pc.
Earlier this week, Pangestu said that growth in total exports would slow to just 1-2.5pc this year, from about 20pc last year. The government had previously forecast total exports would grow 5pc this year.
The government has proposed a 71.3 trillion rupiah ($6.1 billion) fiscal stimulus package to counter the effects of a global economic slowdown, and expects economic growth to slow to between four and 5pc, from an estimated 6.2pc last year.
While Indonesia's economy is less dependent on exports than some other Asian countries, millions of Indonesians are employed in export-related sectors and the prospect of big job losses is a concern for the government ahead of general election.
Indonesian exports include palm oil, tin, coal, copper, and rubber, and prices for many of these commodities have slumped.
Indonesia reported that exports fell 20.6pc to $8.69bn in December from a year ago, the biggest drop in seven years.
"Based on container flow for January-February, exports volume this year may decline by between 20 to 30pc.
Non-oil and gas exports are expected to fall," Pangestu said.
She said that exports of automotive products and electronics would be worst hit.
Car exports through the Jakarta International Container Terminal, the country's largest shipping terminal, fell to 9,391 units last month, from 13,000 units in December last year, Pangestu said, representing a decline of about 27pc.
Earlier this week, Pangestu said that growth in total exports would slow to just 1-2.5pc this year, from about 20pc last year. The government had previously forecast total exports would grow 5pc this year.
The government has proposed a 71.3 trillion rupiah ($6.1 billion) fiscal stimulus package to counter the effects of a global economic slowdown, and expects economic growth to slow to between four and 5pc, from an estimated 6.2pc last year.
While Indonesia's economy is less dependent on exports than some other Asian countries, millions of Indonesians are employed in export-related sectors and the prospect of big job losses is a concern for the government ahead of general election.
Indonesian exports include palm oil, tin, coal, copper, and rubber, and prices for many of these commodities have slumped.
Indonesia reported that exports fell 20.6pc to $8.69bn in December from a year ago, the biggest drop in seven years.