RI's exports to China rise slowly
Zakki P. Hakim, Jakarta
Indonesian exports to China have been increasing over the past four years but at a much slower pace than those from other ASEAN members, a senior official at the Ministry of Industry and Trade said on Tuesday.
The trade lag with China meant Indonesia was being eclipsed by other countries in the region, director of agricultural and mining exports Muhammad Najib told The Jakarta Post.
In terms of value, Indonesia's exports to China increased by 30.68 percent, from US$4.40 billion in 2000 to $5.75 billion last year. However, the country's contribution to China's total imports declined by almost 30 percent, to a mere 1.39 percent of the total value of $413.10 billion in imports last year, from 1.96 percent of $225.10 billion in 2000.
Malaysia, Singapore, Thailand and the Philippines' exports to China were all growing faster than Indonesia's, Najib said.
"Indonesia has yet to establish a trade representative in China. Malaysia already has a marketing office for crude palm oil in Beijing, while Singapore has set up its Singapore Chamber of Commerce there," he said. Najib recently ended his five-year term as the industry and trade attache at the Indonesian Embassy in Beijing.
Thailand was even more progressive, as it had imposed zero tariffs on vegetable and fruit products as part of the "early harvest" program in the ASEAN free trade agreement with China, Najib said.
There remained great export potential in China's markets, which would continue to grow, he said.
Najib said Indonesia's total trade with China last year reached US$10.2 billion, with a surplus of more than $1 billion for Indonesia.
Indonesia's top five exports to China last year were oil and gas commodities, wood and wood panels, pulp and paper, organic chemicals and machinery. Meanwhile, China's top three exports to Indonesia were machinery, electronic and chemical goods.
All 10 ASEAN member countries accounted for 11.46 percent of China's total imports last year, an increase of 16.35 percent on 2000's total of 9.85 percent.
Najib pointed to China Customs office data indicating Malaysia, Singapore, Thailand and the Philippines had increased their contribution last year by 38.93 percent, 12.89 percent, 9.74 percent and 104 percent, respectively.
In three years, the Philippines boosted its exports by 276 percent -- from $1.68 billion in 2000 to $6.31 billion last year.
Meanwhile, during the same period, Malaysia almost tripled its exports from $5.48 billion to $14 billion, Singapore's exports soared from $5.06 billion to $10.49 billion and Thailand's doubled from $4.38 billion to $8.83 billion.
Meanwhile, the ministry's National Export Development Agency head, Diah Maulida, told the Post that Indonesia's previous foreign policy stance in the region was an important reason why it lagged behind other ASEAN countries in building trade relationships with China.
The ministry planned to boost the promotion of Indonesian products in China by holding exhibitions in major Chinese cities, including Beijing, Guang Zhou, Shanghai and Hong Kong this year, she said. One show, the "Indonesia Solo Exhibition" runs in Beijing from Aug. 30 to Sept. 3.