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