Jakarta, Oct 17 (Antara) - Indonesia's exports, up to August this year, dropped 10.61 percent compared to the same period last year. However, Trade Expo Indonesia (TEI) 2016's success is considered a turning point in its export performance.
The Indonesian Chamber of Commerce and Industry (Kadin) hailed the rise of Indonesian exports, as reflected in the increase in the transaction values of Trade Expo Indonesia (TEI) 2016.
"This is a good opportunity to see a turning point in our exports. Our exports continued to drop since early this year. We are grateful, as TEI 2016 could create a momentum," Kadin Chairman for export development Handito Joewono said in Jakarta on Sunday.
The cumulative value of Indonesian exports from January to August 2016 reached 91.73 billion US dollars, down 10.61 percent over the same period in 2015.
However, the success of this year TEI is expected to become a turning point in Indonesia's export performance. The value of trade sanctions concluded in the TEI 2016 has reached US$974.76 million, up 7.2 percent from last year's TEI transaction value, which stood at US$909 million.
"The value of the TEI 2016 transactions that reached US$974.76 million met the expectation of President Joko Widodo. The president has asked that the TEI should serve as a leverage for the nation's exports. This has been achieved because the value of this year's TEI transactions is 7.2 percent higher than in 2015," said Trade Minister Enggartiasto Lukita, in his address at the closing of TEI 2016 in Jakarta on Sunday.
President Jokowi has ordered the trade minister to maintain the balance of trade, hoping that the TEI can be a decisive moment to reverse the decline of the nation¿s exports.
Seeing the TEI 2016 success, Minister Enggartiasto said he hoped that the export performance in 2017 would be better than this year's. However, the minister was reluctant to reveal his ministry's export target.
"Exports in 2017 should be higher, and every year's exports should be higher than those in the preceding year. We will see the growth of the world economy, how far it recovers. At least our exports should not be lower than the previous year," said Enggartiasto.
Indonesia can achieve a stable condition and a slight increase in its export performance with the opening of new markets outside the traditional export destination countries. Small and medium enterprises (SME) are also encouraged to increase added values to their export products.
SME products are directed to be export products with added values, enabling the nation¿s export performance to focus not merely on primary products, such as crude palm oil (CPO).
Further, the Trade Ministry is making efforts to provide added values for SME products through the Indonesia Design Development Center (IDDC), with Designers program Dispatch Service (DDS).
"We have the IDDC, which is a collaboration between designers with entrepreneurs of SMEs. The products are presented with our characteristic designs. They will have high added values. In 2017, we will give special attention to the IDDC. The president has ordered me to provide an adequate budget," said Enggartiasto
TEI 2016 conducted transactions worth US$974.76 million, or equivalent to Rp12.7 trillion. It is predicted that it will continue to grow. The potential buyers came not only from the traditional export destination countries, but also from non-traditional countries, such as from Africa, the Middle East and Central Asia.
Of the total, goods still dominated the transactions, recording US$ 826.52 million, followed by the service sector, worth US$48.23 million, and Indonesian investment to other countries amounted to US$100 million.
There were 15,567 potential buyers from 125 countries. Of the total, 110 countries made transactions indirectly with domestic businesses.
On export performance, as reported by the Central Bureau of Statistics (BPS), Indonesia's export value in August 2016 reached US$12.63 billion, down 0.74 percent compared with the same month in the previous year. Non-oil exports, however, were up 2.76 percent in August 2016, reaching US$11.50 billion.
In the meantime, in an effort to increase Indonesia's exports, the Indonesian Chamber of Commerce and Industry (Kadin) has worked out strategic plans.
In this case, Kadin will put in place five export development strategies, as contained in its export development road map, to increase exports by 500 percent in the coming 10 to 15 years.
The first strategy is the increase in the number of new exporters from large, medium and small scale companies. "Small business players should not be forgotten. Many of them already have export potential, but they have not yet begun exporting goods," Kadin Chairman for export development Handito Joewono said.
Diversification of export products is the second strategy. Handito sees that fisheries and the maritime sector has the potential in this area.
He said that the third strategy is to expand export markets by finding new markets and carrying out deep penetration into the market.
"Penetration means that we should deepen our market in export destinations, such as increasing the market in regions of export destination countries. We can utilize e-commerce, in this case," he said.
The other strategy is to increase the average price of export products by increasing the products' added values through downstream sector development.
The fifth strategy, he said, is improving the export condition where all exporters should be encouraged to have export mind-sets. "Thus, we hope Indonesia will become a big exporting country," Handito added.***3***(A014/INE)
(T.A014/A/BESSR/F. Assegaf) 17-10-2016 13:21: |
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