Soeharto warns of export growth slowdown
Soeharto warns of export growth slowdown
JAKARTA (JP): President Soeharto warned yesterday about
slowing export growth and the widening current account deficit.
The government began deregulating the economy 15 years ago
which had increased exports slightly, Soeharto said when opening
the Indonesian Chamber of Commerce and Industry's national
convention.
"But we should realize that our increased exports are still
less than those of other developing countries in Asia. This
should be given close attention," he said.
Growth of the country's non-oil exports had slowed in recent
years while imports had increased rapidly, he said.
Non-oil exports grew from US$27.1 billion in 1993 to $30.4
billion in 1994 and $34.9 billion in 1995. Non-oil imports rose
from $26.2 billion in 1993, to $29.6 billion in 1994 and $37.7
billion in 1995.
"All of these things cause the current account deficit to
rise," the President said.
The current account deficit increased from $2 billion in 1993
to $3.34 billion in 1994 and $6.9 billion in 1995.
Soeharto told the chamber not to worry about the rising
current account deficit.
Instead of getting discouraged by the current account deficit
in the face of trade liberalization, you should improve the
situation, he told the chamber's businesspeople.
"The business society and the chamber should try hard to
expand the market for our goods and services abroad. Our economic
progress and development depend much on our ability to take
advantage of the foreign market," he said.
The President called on businesspeople to make their products
and services more competitive by improving efficiency and being
innovative.
He said the country should continue to nurture small and
medium enterprises to drive the economy and exports, and provide
more employment.
"The government's efforts to develop small and medium
enterprises will not be enough. It needs the participation of
private business," he said.
Minister of Industry and Trade Tunky Ariwibowo told the
convention the government would continue to make the bureaucracy
more efficient, and business more efficient through deregulation.
For the bureaucracy, Tunky said, the government would continue
to improve its transparency in policy making and implementation.
"The government will improve its services and be more
proactive in developing business. And the business sector is
expected to improve their own efficiency so that they can benefit
from the opportunities that arise," Tunky said.
Minister of National Development Planning Ginandjar
Kartasasmita said now was the most appropriate time for the
chamber and business to strengthen their role in economic
development.
"We are facing the new challenge of economic globalization
which is marked by stiff competition," he said.
He said the future absence of government protection would
force companies to compete against each other, including foreign
firms. (rid)