Indonesian firms upbeat on export sales: Survey

Indonesian firms upbeat on export sales: Survey

The Jakarta Post, Jakarta

Local exporting companies are mostly optimistic that their export sales to the Asia-Pacific region and Europe will increase over the next 12 months, but they are somewhat less upbeat about the United States and African markets, according to a survey.

The survey, which was jointly carried out by consultancy firm Castle Asia and U.S. delivery firm DHL, put exporters' confidence index at 31.3 for the next 12 months.

The index's figure is equal to the percentage of exporters expecting an increase in export sales minus the percentage of exporters expecting a decrease in export sales.

The confidence index was at 29.8 for the second quarter of the year, which has just passed.

The survey was carried out on 245 respondents, 72 percent of which export less than US$10 million per quarter. It was conducted in April.

The survey said the major factors affecting export sales were the cost of raw materials and economic, political conditions in the country.

Regarding the performance of companies in the second quarter, the survey said 47 percent of exporting companies projected their exports would be higher than those in the first quarter.

Another 35 percent expected their exports would remain flat, and less than 15 percent predicted their exports to decline, it added.

For the next 12 months, more than 47 percent of the respondents expected their exports to increase, according to the survey. About 25 percent hoped their exports to remain the same, and more than 15 percent saw a decrease in their exports.

According to the survey, the Asia Pacific region is the primary export market with 65 percent of companies exporting within the region.

Secondary export destinations were the U.S, Canada and Europe with 53 percent of companies exporting to those countries, said the survey.

Regarding revenue for the second quarter, the survey said 41 percent of the exporting companies expected export prices to remain stable, while 37 percent expected the price to increase. Only 21 percent see a decrease in export prices for the quarter.

The survey went on that although companies were generally upbeat about their export sales over the next 12 months, 41 percent of them would prefer to maintain current employee levels to raising the number of employees.

Another 25 percent would increase the number of their workers, while 33 percent would cut their workforce, the survey revealed.