ID :
10629
Mon, 06/23/2008 - 19:06
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Shortlink :
http://m.oananews.org//node/10629
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FUEL PRICE HIKE DRAGS DOWN EXPORT VOLUME: MINISTER
Jakarta, June 23 (ANTARA) - The fuel price hike last May has raised production costs, reduced the items of goods and caused a decline in the volume of Indonesia's exports, Trade Minister Mari Elka Pangestu said.
"Actually, the fuel oil price hike should have boosted the value of the country's exports because sales prices have risen but in real terms, the increase in the oil prices has lowered the volume of exports," the minister told the House of Representatives (DPR)'s Commission VI which deals with trade affairs here on Monday.
She, however, predicted that though export growth would slow down, export performance would be relatively stable in 2008.
The percentage of Indonesia's exports against the country's gross domestic product (GDP) was predicted to remain the same as in the period a year earlier, she said.
"The value of our exports compared with the GDP is relatively stable at about 29.3 percent. The level of this percentage does not change much compared with that during the fuel oil price hike in 2005 and the increase in the oil price in the world market in 2007," the minister said.
Pangestu said that non-oil export growth in 2008 was expected to reach 12.5 percent. Exports would continue to grow because the prospects of a number of processed industrial products, particularly in the automotive sector, in overseas markets were improving.
"Actually, the fuel oil price hike should have boosted the value of the country's exports because sales prices have risen but in real terms, the increase in the oil prices has lowered the volume of exports," the minister told the House of Representatives (DPR)'s Commission VI which deals with trade affairs here on Monday.
She, however, predicted that though export growth would slow down, export performance would be relatively stable in 2008.
The percentage of Indonesia's exports against the country's gross domestic product (GDP) was predicted to remain the same as in the period a year earlier, she said.
"The value of our exports compared with the GDP is relatively stable at about 29.3 percent. The level of this percentage does not change much compared with that during the fuel oil price hike in 2005 and the increase in the oil price in the world market in 2007," the minister said.
Pangestu said that non-oil export growth in 2008 was expected to reach 12.5 percent. Exports would continue to grow because the prospects of a number of processed industrial products, particularly in the automotive sector, in overseas markets were improving.
