Export diversification starts yielding

JAKARTA: Government reported that diversification of non-oil and gas export markets began to show a result as reflected from the declining trend of commodity shipping value to five major destination countries of trading.According to Trade Ministry, market share of the five major destination countries of Indonesias non-oil and gas export during January-May has declined significantly to 45.99%, widening the market share of other export destination countries.Market shares in those five countries were 43%-45% in line with our target. We are also targeting to increase the market share of other countries, Directorate General of Foreign Trade at Trade Ministry Deddy Saleh in Jakarta over the weekend.Exports to those five major countries, i.e. Japan, China, US, Singapore, and Malaysia during January-May 2010 were around 47.38% from the total value of non-oil and gas value in same period at US$10.3 billion.Meanwhile, Indonesias non-oil and gas export reached US$14.22 billion in the first five months this year. Declining in major market share also occurred in same period as influenced by declined export to US, Japan and Singapore.Last year, export market in US was 10.39%, Japan 12.96%, and Singapore 7.79%.New recordAccumulatively, Indonesias non-oil and gas export during January-May reached US$64.25 billion, higher than US$48.9 billion in same period a year earlier. Meanwhile, overall export of oil and gas and non-oil and gas reached US$18.33 billion in May or 45.29% higher compared to same period last year.Such export figure was the highest for Indonesias export. The highest after US$16.83 billion achieved in December 2010," Head of the Central Bureau of Statistics (BPS) Rusman Heriawan said.Currently, Indonesias non-oil and gas exports to those five major export countries reached 79% of total export value in overall. Growth also occurred in several developing countries like South Africa, Iran, Russia and Bangladesh.The government began to encourage diversification of non-oil and gas export market to maintain Indonesias export market amidst crisis in major countries.In particular, Deddy highlighted the development of Indonesias export to Malaysia, which increased significantly by around 40.8%, limiting concern on the high flow of Malaysia's exports to Indonesia.(T06/NOM)