RI export slowdown expected to continue

JAKARTA (JP): Indonesia's export growth during the next five years could slow down to become the lowest in Southeast Asia, says an analyst.

Sudarno, a researcher of the Center for Policy and Implementation Studies (CPIS), said in Jakarta yesterday that this scenario could be avoided if the government changed the current trade policy and made efforts to lift the quality of human resources.

"It will be much worse than those in Malaysia and the Philippines," he said, commenting on the recent World Trade Organisation (WTO) report published in Geneva.

According to the report, Indonesia's export growth was the slowest in Southeast Asia, growing on average by 12 percent per annum over the last six years. Other countries in the region grew by average of 15 percent during the same period.

Sudarno said the government should eliminate unfair trading practices, including monopolies to improve the country's export performance.

"The monopoly system harms our economy in the long term," he said.

He warned that high export growth is achieved not only by possessing abundant natural resources, but also good quality human resources and advanced technology.

He cited Taiwan as an example. "The country has only limited natural resources. But due to its quality of human resources, Taiwan's exports grew by 16 percent per year," he said.

Trade analyst Muntiarso urged the Indonesian government to change its selection system and develop top products for exports.

"The top products should be selected and developed with a view to improving our total export performance," he said, adding that they should also be diversified to include other potential goods.

"Promotion of the top products is also very important. Other Asian countries do it a lot," he said. (bnt)