Mari Pangestu: automotive exports hit hardest
Jakarta (ANTARA News) - Trade Minister Mari Elka Pangestu said Indonesia`s automotive exports had been hit by the current global economic crisis.
"Exposure of the electronic industry is not too big. Automotive exports will likely be hit the hardest. However our automotive exports are not too big, and reached only US$1.4 billion. Shoe exports are also hit. Those hit are vulnerable to lower demand," she said.
She said Indonesia`s exports would not be affected too much because demand is still steady.
"Our export commodities are basic such as palmoil and coal. People continue to need them and therefore the drop in their exports is not as drastic as that of electronic goods like what Singapore and Malaysia have experienced," she said.
She said the drop in the country`s commodity exports was not too steep because some contracts were long-term and the commodities being exported were basic.
"One for food and others for generating power. Indeed there has been a slowdown due to shortened contracts because of a lower demand," she said.
To anticipate export decline she said Indonesia was now seeking new markets and new products for marketing at home. "With regard to exports the prospect will be gloomy like now. So we must safeguard the domestic market," she said.
Finance minister Sri Mulyani meanwhile said his office had noted that exports would decline this year.
She said according to Jakarta`s Tanjung Priok port records the volume of exports dropped 23 to 25 percent in February compared to the same period last year.
So, she said, if the contraction reached five to 10 percent until the end of the year target of economic growth would be revised.
"Our scenario is if export contraction until the end of the year reaches minus five or 10 percent revision on growth will happen," she said.
Mulyani meanwhile said efforts to increase domestic demand through new stimulus would only be seen by April or May.
She said she was still optimistic that bank credits would still increase by 15 to 20 percent. "What might drop is the role of the stock market. Until now no corporation has issued bonds meaning they are calculating again their plan to expand," she said.(*)
"Exposure of the electronic industry is not too big. Automotive exports will likely be hit the hardest. However our automotive exports are not too big, and reached only US$1.4 billion. Shoe exports are also hit. Those hit are vulnerable to lower demand," she said.
She said Indonesia`s exports would not be affected too much because demand is still steady.
"Our export commodities are basic such as palmoil and coal. People continue to need them and therefore the drop in their exports is not as drastic as that of electronic goods like what Singapore and Malaysia have experienced," she said.
She said the drop in the country`s commodity exports was not too steep because some contracts were long-term and the commodities being exported were basic.
"One for food and others for generating power. Indeed there has been a slowdown due to shortened contracts because of a lower demand," she said.
To anticipate export decline she said Indonesia was now seeking new markets and new products for marketing at home. "With regard to exports the prospect will be gloomy like now. So we must safeguard the domestic market," she said.
Finance minister Sri Mulyani meanwhile said his office had noted that exports would decline this year.
She said according to Jakarta`s Tanjung Priok port records the volume of exports dropped 23 to 25 percent in February compared to the same period last year.
So, she said, if the contraction reached five to 10 percent until the end of the year target of economic growth would be revised.
"Our scenario is if export contraction until the end of the year reaches minus five or 10 percent revision on growth will happen," she said.
Mulyani meanwhile said efforts to increase domestic demand through new stimulus would only be seen by April or May.
She said she was still optimistic that bank credits would still increase by 15 to 20 percent. "What might drop is the role of the stock market. Until now no corporation has issued bonds meaning they are calculating again their plan to expand," she said.(*)