Jakarta (Antara Bali) - The Indonesian Chamber of Commerce and Industry (Kadin) has expressed concern over the country's declining export performance, saying a breakthrough is needed to give it a new breath to improve the performance.
Kadin general chairman Suryo Bambang Sulisto said here on Wednesday that in the first half of the year exports fell 11.8 percent on-year.
Suryo Bambang Sulisto said the present condition reminded him of the global financial crisis in 2008-2009 when the country's exports plunged on weak industrial sector and price fall.
He said that the country relies on exports to raise foreign exchange to strengthen its foreign exchange reserves.
"Unfortunately imports also declined on weak rupiah serving a big blow to the industries. A number of companies are forced to lay off workers for efficiency," he said.
He said surplus in trade in the first half of 2015 did not reflect positive performance as the surplus was more on shrinking imports rather than an increase in exports.
He said the country's imports shrank 15.1 percent in the first six months of the year, adding the fall was sharper than a 11.67 percent decline in exports. He said the declines in exports and imports signaled danger in the country's international trade.
Kadin already offered advises to the government on ways to revive exports and imports such as by developing industry using more local content and reduce the use imported basic materials.
The government was urged to encourage development of export oriented industries and give greater access to banking credit for potential small industries producing export commodities, Suryo said.
He said the government could offer subsidy on interest rate and fiscal stimulus for potential industries facing financial problems.
He said imports of consumers goods especially luxurious goods should be restricted.
Restriction should also be imposed on imports of industrial basic materials or auxiliary materials that could be produced domestically, he said. Meanwhile, Director General of the National Export Expansion Nus Nuzulia Ishak said Indonesia has sought to boost exports to non traditional markets expand in a bid to offset the decline in exports to traditional markets .
"We already carried out surveys in a number of regions where the falling value of rupiah against the U.S. dollar have less impact," Nus said here on Thursday.
Surveys have been made in non traditional markets in Central Asia, Southeast Asia, South Asia, Africa, Middle East and Latin America.
In countries in Central Asia , expansion of export market is sought for automotive , electronics and rubber products. The products have potential markets in Kazakhstan and ta Uzbekistan.
"In Southeast Asia, I think Vietnam, Cambodia, Malaysia, Myanmar and the Philippines are potential markets," he said.
He said in South Asia, India is expected to continue to be a potential market for a number of Indonesian commodities like crude palm oil. In 2014, trade with India favored Indonesia with a surplus of US$8.66 billion in non-oil/gas sector. (WDY)
COPYRIGHT © ANTARA News Bali 2015
Kadin general chairman Suryo Bambang Sulisto said here on Wednesday that in the first half of the year exports fell 11.8 percent on-year.
Suryo Bambang Sulisto said the present condition reminded him of the global financial crisis in 2008-2009 when the country's exports plunged on weak industrial sector and price fall.
He said that the country relies on exports to raise foreign exchange to strengthen its foreign exchange reserves.
"Unfortunately imports also declined on weak rupiah serving a big blow to the industries. A number of companies are forced to lay off workers for efficiency," he said.
He said surplus in trade in the first half of 2015 did not reflect positive performance as the surplus was more on shrinking imports rather than an increase in exports.
He said the country's imports shrank 15.1 percent in the first six months of the year, adding the fall was sharper than a 11.67 percent decline in exports. He said the declines in exports and imports signaled danger in the country's international trade.
Kadin already offered advises to the government on ways to revive exports and imports such as by developing industry using more local content and reduce the use imported basic materials.
The government was urged to encourage development of export oriented industries and give greater access to banking credit for potential small industries producing export commodities, Suryo said.
He said the government could offer subsidy on interest rate and fiscal stimulus for potential industries facing financial problems.
He said imports of consumers goods especially luxurious goods should be restricted.
Restriction should also be imposed on imports of industrial basic materials or auxiliary materials that could be produced domestically, he said. Meanwhile, Director General of the National Export Expansion Nus Nuzulia Ishak said Indonesia has sought to boost exports to non traditional markets expand in a bid to offset the decline in exports to traditional markets .
"We already carried out surveys in a number of regions where the falling value of rupiah against the U.S. dollar have less impact," Nus said here on Thursday.
Surveys have been made in non traditional markets in Central Asia, Southeast Asia, South Asia, Africa, Middle East and Latin America.
In countries in Central Asia , expansion of export market is sought for automotive , electronics and rubber products. The products have potential markets in Kazakhstan and ta Uzbekistan.
"In Southeast Asia, I think Vietnam, Cambodia, Malaysia, Myanmar and the Philippines are potential markets," he said.
He said in South Asia, India is expected to continue to be a potential market for a number of Indonesian commodities like crude palm oil. In 2014, trade with India favored Indonesia with a surplus of US$8.66 billion in non-oil/gas sector. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2015