Non-oil, gas exports projected to rise 10%
JAKARTA (JP): The value of Indonesia's non-oil and gas exports is expected to increase 10 percent next year to about US$53 billion from some $48 billion this year, Minister of Trade and Industry Luhut B. Panjaitan said here on Wednesday.
"I personally think we will exceed this amount and may even achieve a 15 percent increase next year, but 10 percent is our conservative view," he said during a year-end gathering here.
The conservative 10 percent estimate was reached partly as a precaution against an expected economic slowdown in the United States next year, Luhut said.
"The United States market absorbs 16.6 percent of our total exports, so a slowdown would inevitably effect us as well," he explained.
Luhut said his office would try to counter the effects of any slowdown by exploring export destinations other than Indonesia's traditional markets of the United States, Japan, Singapore, Malaysia, China, South Korea, Germany and Taiwan.
"We are trying to further increase our export market to Australia and Pakistan as a way to counter the effects of a U.S. economic slowdown," he said.
Luhut said non-oil and gas export revenue reached a total of $39.9 billion from January to October of this year, an increase of 23 percent from the $32.06 billion during the same period last year.
"I am certain we will exceed $48 billion, but the final word will be when the December numbers come out," he said.
Luhut said this year's non-oil and gas export earnings were "phenomenal", showing an increase of more than $9 billion from last year's $38.87 billion
This higher figure could be the result of an increase in demand for Indonesian products, or the positive effects of the government's easing export restrictions, he said.
It could also be the result of industries beginning to return to full capacity from the idleness which was caused by the economic crisis, Luhut said
The ministry will concentrate on 16 export commodities next year in its efforts to help boost the economy, Luhut said.
The commodities are pulp, vegetable oil, plywood and veneers, wooden goods, paper and cardboard, yarn, woven cloth and textile fibers, office equipments, voice and video recorders, furniture, garments, footwear furniture, telecommunications devices and gems and jewelry.
He said when the prioritized commodities have found footholds on the international market, the ministry will then focus its attention on other commodities.
Total export value between January and October reached $51.6 billion from $39.7 billion during the same period last year, he added.
Luhut also said total export revenue was projected to increase by about 24 percent to $60.4 billion from some $48.6 billion.(tnt)