Mari aims to push exports, help economic growth

Zakki P. Hakim, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono's government aims to boost the country's export performance in a bid to help accelerate economic growth, new Minister of Trade Mari Elka Pangestu says.

Mari said in order to push exports, improving the productivity and efficiency of the country's manufacturing sector was a must.

"I am here as an aide for the President, who has a vision of increasing economic growth and eventually creating new jobs," Mari said after being sworn in on Thursday.

She would not provide details of her first likely moves, saying she needed to wait for the first Cabinet meeting and the government's official announcement of its first 100-day programs next week.

Susilo has said his top economic priorities were to improve economic growth to beyond 6 percent (from the estimated 4.8 percent this year) and create more jobs.

Analysts have said that to reach such growth level, the country must be able to boost exports, as economic growth in the past several years had been driven mainly by domestic consumption, with exports and investment remaining weak.

Exports remained uncompetitive because of rampant corruption, low productivity, and protracted labor disputes, they said.

The previous government had projected non-oil and gas exports would grow by 7 percent this year to around US$50 billion.

Analysts, however, have warned the current surge in oil prices could cut demand for export products from developing countries in Asia as consumers in developed countries allocated more of their incomes to pay for fuel.

Mari said she would continue some of the work of her predecessor Rini MS Soewandi in negotiating at the World Trade Organization, and working on plans to create the ASEAN economic community, and the ASEAN-China Free Trade Area.

She admitted many observers thought globalization could bring more pain than gain, and said the ministry would need to anticipate the negative impact of trade liberalization.

"We must come up with balancing policies to encourage the participation of other sectors, especially those who currently do not take part in the process.

"This does not mean that we should be anti-globalization. What is more important is that we must anticipate the negatives."

Indonesia should play a bigger role in East Asia where it was regional production center for electronic and automotive parts for the industrialized world, Mari said.

Separately, the Indonesian Chamber of Commerce and Industry (Kadin)'s vice chairman for international cooperation, John A. Prasetio, said the country lagged behind its neighbors in terms of international trade, especially in pursuing bilateral free trade agreements.

"Indonesia needs a competent minister, who understands international trade," he told The Jakarta Post.

John said Malaysian Minister of International Trade and Industry Rafidah Aziz was an ideal example of how an official could anticipate globalization. Mari could have the expertise to match her, he said.

"We need to be aggressive, and through Mari we could have a good chance," he said.