Indonesia's exports fall again

Indonesia's exports fall again

The Central Bureau of Statistics (BPS) has announced a drop in
the overall export value by 13.80 percent in the first quarter of
2002 from US$14.86 billion to the corresponding period of 2001.
The BPS report is not surprising as the drop is due to
traditional factors, which has never been given proper attention.

The BPS has cited the rupiah appreciation, political and
security instability, the high-cost economy and labor actions as
the factors causing the decrease in the export value. Among
commodities which showed smaller export value were footwear,
shrimp and fish, chemical products, spices, coffee, tea and
jewelry.

It is necessary to anticipate the possibility that the export
value will be down further in the second quarter of this year.
More and more factories, which have so far served as the backbone
of Indonesia's exports, have moved to other countries, mainly
China.

Some investors consider China more conducive to their business
thanks to the low production cost, the high labor productivity,
the large domestic market, cooperative government officials and
the upholding of law enforcement.

In striving to promote export, Indonesia should restore the
agricultural sector, which produces top export commodities, and
strengthen cooperation with other ASEAN countries. Moreover, the
government should intensify coordination with the business world.

-- Bisnis Indonesia, Jakarta