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Indonesia to raise export

JAKARTA: Indonesia raises this years export target to US$200 billion, higher than the initial target in early this year at US$168 billion.Such rising target is in line with Indonesias trading trend as per May. Based on the report of Central Bureau of

JAKARTA: Indonesia raises this years export target to US$200 billion, higher than the initial target in early this year at US$168 billion.Such rising target is in line with Indonesias trading trend as per May. Based on the report of Central Bureau of Statistics, Indonesias trading balance was US$80.28 billion or soared by 33.37% compared to the first five months last year.In order to achieve such export target, government relies on business sector, including small and medium scale industries, said Minister of Trade Mari Elka Pangestu.We are quite optimistic to achieve such target, at least until the end of this year, it will approach our target of US$200 billion, he said in Jakarta yesterday.As a matter of fact, government is not willing to raise export value as it focuses more on the increase of additional value. Besides, government prefers this years export to be more inclusive.In this case, inclusive means that export is not derived mainly from huge industry as it is also attributed by small and medium scale industries. Inclusive means that the export contributor is not solely from Java.On the same occasion, Industrial Minister M.S Hidayat said that in order to meet the target, Indonesia requires an enhancement over domestic products by partnering with top retailers.If Indonesia is able to record US$200 billion export, it means there will be 26.75% export jump compared to last years realization. In 2010, Indonesias export was US$157.79 billion.This export includes oil and gas and non oil and gas export, mining and agriculture commodities. Head of Indonesias Entrepreneur Association Sofjan Wanadi reminded that export is still dominated by raw materials while the export of final products is limited. Unfortunately, the largest trading value is attributed by final products.We are exporting raw materials to other countries, then, these raw materials are processed to be final products for then being exported to Indonesia. The additional values are enjoyed by that country not Indonesia, he said.He further said that there have not been any concrete attempts from government to bolster export of final products. According to him, policy makers should accelerate the incentive distributions merely to foster export of final products. Manufacturing industriesMinistry of Industry predicted that total export from processing industry this year would reach US$97.79 billion, said Director of Industry International Partnership Agus Tjahajana.The target is considered as low, as the real manufacturing industry export during the first four months of the year gained US$39 billion.Export of manufactured products is predicted to grow by 8.3% a year. Based on the low target by the Ministry, export of this commodity will climb to US$111.17 billion in 2012 before sliding to US$496.43 billion in 2013.In 2014, export may jump to US$114.57 billion and will break US$134 billion in 2015.Programs focusing on processed agricultural products and special priority will foster the growth of manufacturing, fertilizer and other commodities by up to 13% a year.Processed palm oil, rubber, tin-copper will be the main contributors of exports in 2015 with value US$24 billion, US$19 billion and US$17 billion.Meanwhile, exports of woods and rattan, educational instruments, and processed aluminum will continue to decline. Processed rattan is still facing the problem of raw material, which may lead to a 24% decrease in exports.Thailand, as one destination country, is predicted to have the largest growth of export from Indonesia. During 2011-2015, the country may have 12.4% growth of export from Indonesia in average. Electronics will be the main products from Indonesia to Thailand.In the meantime, Malaysia is the next in line as the destination with second largest growth, at 11.8%, and followed by Philippines with 11%. China is a non-Asean trade partner having considerable high growth of incoming goods from Indonesia, at 10.6%.Though Indonesia has deficit trade with China, export to the destination country will continue increasing and will even reach US$14.3 billion in 2015, Agus said.In addition to China, India and South Korea are predicted to have significant increase of imports from Indonesia in 2015 with growth at 9.7% and 9.1% respectively.On the other hand, Indonesian imports in 2007-2010 from trade partners tended to increase, higher than exports to them.Imports, as Agus added, have gained double compared to exports. During the period, exports of Indonesian products to global increased 9%, and imports grew 28%, he said. (Maria Y. Benyamin) (t02/t04/msw)

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