Kalla opens handicraft fair

JAKARTA (JP): Minister of Industry and Trade Jusuf Kalla opened the Second Jakarta International Handicraft Trade Fair at the Jakarta Convention Center on Wednesday.

The trade fair, organized by the Association of Indonesian Exporters and Handicrafts Producers, runs until Sunday and hopes to attract foreign buyers and help the government increase non- oil and gas exports.

"Indonesia's economic development still depends largely on exports from the non-oil and gas sector," Kalla said in his opening speech.

For the past 10 years, the government has strived to diversify the commodities and products it exports as well as its export markets, said the former businessman who joined the Cabinet last October.

Income from handicraft exports grew by an average of 23 percent between 1994 and 1998, when it peaked at US$1.9 billion despite the fact that it was the height of the economic crisis, Kalla said.

But handicraft exports nose-dived to $426 million in the first 10 months of last year, he said.

He attributed the decline to falling world demand, a shortage of raw materials and increased competition.

Kalla said he hoped the trade fair would increase demand for Indonesian handicrafts abroad and increase exports.

Some 300 Indonesian exporters and producers of handicraft products are taking part in the event, which is expected to attract 125 buyers from 25 countries, organizers said. (10)