Industrial exports expected to gain momentum in 1995
Industrial exports expected to gain momentum in 1995
JAKARTA (JP): Minister of Industry Tunky Ariwibowo expressed
optimism yesterday that Indonesia's industrial exports would gain
more momentum next year, given the economic recovery of major
importing countries.
Tunky said here that the economic recovery in many importing
nations, particularly Japan and the United States, will further
push up the demand for Indonesia's industrial exports, which
suffered slower growth in the first eight months of this year.
"The performance of Indonesia and its industrial exports to
Asian countries is also expected to strengthen in line with their
growing economic activities," the minister told newsmen in a
year-end press briefing.
Exports to the United States, Japan and other Asian countries
account for around 70 percent of Indonesia's total exports.
Indonesia's industrial exports rose a mere 8.11 percent to
US$16.35 billion in the January-August period from $15.12 billion
in the same period of last year, the minister said.
He said, however, that the 8.11 percent growth was still lower
than that recorded in the corresponding period in the previous
year due to the drop in export earnings from plywood and textile
products.
Plywood exports, the largest export earner among the non-oil
sectors, dropped by 0.80 percent to $3.78 billion in the January-
August period, while those of textile products fell by 9.40
percent to $3.74 billion.
The minister attributed the drops in the prime exports to the
fall in their prices.
"The economic recession in some industrialized nations caused
a significant drop in the demand for plywood and textile
products," he said.
Economic analysts estimated that the growth of this year's
industrial exports will reach less than 15 percent, much lower
than government's annual growth projection of 17.5 percent, due
primarily to a drop in the plywood and textile exports.
Indonesia's total exports in the first eight months of this
year increased by only 5.82 percent to $25.57 billion from $24.11
billion in the same period of last year.
Growth
Tunky said that the improvement in the business climate
resulting from the simplification of investment procedures would
further stimulate industrial activities next year.
The minister estimated that the growth of the metal, machinery
and electronic industries would reach 15.83 percent, the chemical
industry 7.9 percent, the multifarious industries 8.26 percent,
the agriculture-based processing industries 8.20 percent and
small industries five percent.
"The government is committed to further deregulating
bureaucratic lines to stimulate new businesses," the minister
told newsmen of his office's program to stimulate industrial
activities.
Other programs, the minister said, will include aligning the
business visions of both industrialists and government officials
through the introduction of more intensive training programs on
human resource development, the improvement of management systems
in the industrial sector and the introduction of new patterns of
industrial development strategies.(hen)