RI sets $60 billion target from export earnings: Luhut

RI sets $60 billion target from export earnings: Luhut

JAKARTA (JP): Minister of Industry and Trade Luhut Pandjaitan
said on Monday that Indonesia expected to reap US$60 billion in
export revenue next year, an increase of $5 billion from an
estimated $55 billion this year.

"It's my hope that export revenue can reach $60 billion next
year, we'll see if we can get even more than that, I am quite
optimistic," Luhut told reporters after attending the House of
Representatives' state budget plenary meeting.

The government initially predicted $44.8 billion in total
exports this year, but thanks to favorable crude oil prices the
government may see its target exceed by over $10 billion.

But Luhut added that a real export target had yet to be worked
out.

He said that there were many factors which may boost the
export target next year to beyond this year's estimated $55
billion.

In its quarterly economic report, Bank Indonesia predicted
continued strong export growth on the back of a recovering
economy and the present high crude oil prices.

Data from Bank Indonesia showed that up until Sept. 2000,
total exports reached $34.8 billion, growing by 19.6 percent as
compared to the same period last year.

In the non-oil and gas sector, growth was mainly driven by
industrial and mining products, which grew by 25.1 percent and
4.8 percent respectively.

High growth in industrial export products were mainly recorded
in exports of electronic appliances, paper and textiles. Whereas
exports of aluminum and nickle were the main contributors in
mining exports.

However, exports of agricultural products declined by 2.9
percent, largely because of declining world prices of
agricultural commodities.

Luhut confirmed that several key export products like
textiles, electronics and footwear were showing robust growth.

To further boost their exports, he said, the government
planned to meet electronics principals in Japan.

"We will meet in Japan to talk to their (exporters')
principals to expand their businesses here because the potentials
here are big," he said.

"It looks like they're going to give their go ahead," he
added.

Luhut said that once he had returned from Japan, he would have
a clearer picture on how to encourage the Japanese investors to
invest here.

"We're focusing on developing the businesses that they have
already developed successfully in the country such as electronics
and software," he said.

He said he would meet next month with several large exporters
to discuss ways of improving their exports.

Indonesia booked record export levels for three months in a
row, as exports climbed to $5.54 billion in August from $5.35
billion the previous month, according to the Central Bureau for
Statistics (BPS).

Bank Indonesia's report also cited the persistently weak
rupiah against the U.S dollar to have raised the competitiveness
of local products abroad.

Furthermore, Bank Indonesia said that the availability of the
General System Preference (GSP) in several export markets had
helped textile exporters.

In the first half of this year, the country's trade surplus
reached $12.6 billion, with exports totaling $30.3 billion as
against total imports of $17.7 billion, the bank said. (bkm)