Tue, 27 Jul 2010

Bandung, W Java (ANTARA News) - Indonesia is still suffering 0.3 billion dollars in its trade balance with china, Trade Minister Marie Elka Pangestu told a panel discussion on Monday.

The trade deficit suffered by Indonesia was caused by the decline in its oil and gas exports, the minister said.

She said that in order to overcome the trade deficit with China Indonesia needed faster and wider market access in the face of the Asean-China Free Trade Agreement (ACFTA). This has to be done in line with the increasing movement of goods and services.

"The need for wider and faster market access necessitates each country to find a new breakthrough," Minister Mari Pangestu said.

She said that the World Trade Organization (WTO) had concluded 450 bilateral and regional free trade agreements (FTA), including with Indonesia.

Indonesia`s annual exports of industrial and mining products to China in 1999 - 2009 increased 18.8 percent and 75.5 percent respectively.

Indonesia`s mining product exports to China in January - May 2010 increased drastically from 0.4 billion dollars to 1.8 billion dollars.

In the meantime Indonesia`s imports of Chinese capital and supporting goods increase rapidly with an average growth of 51.4 percent from the average growth of 26.0 percent in the 1999 - 2009 period.

On the occasion, the trade minister said that over the past five years Indonesia`s main export markets had been shifting from the advanced countries like the European Union, the United States and Japan to the emerging economies such as China, Singapore and India.

She said that in the January - May 2010, Indonesia`s non oil and gas exports reached 47 percent.

The United States and Japan were still the main market destinations of Indonesia`s oil and gas, she added.(*)