RI GOVT PREPARING INCENTIVES TO PROMOTE EXPORTS

Jakarta, Oct 5 (ANTARA) - The Indonesian government is preparing special incentives to promote exports which are predicted to decline following the weakening global economy as a result of the financial crisis in the United States.

"We will follow up the incentive suggestions along with the industry minister. We will hold a meeting this week to find the right incentives that will promote exports," trade minister Mari Pangestu said here on Sunday.

She said the impact of the US crisis would not directly reduce Indonesia's export performance this year but would occur next year, as country's exports to the US were not big, reaching only 11.6 percent, she said.

"Our non-oil and gas exports to the US grow 13.8 percent. The biggest market share of our exports is Asia," she said.

She said however that caution had to be taken especially towards the second round effect of the crisis on Asian countries such as China, Korea, Taiwan and Japan which are the main markets of Indonesian export products.

"If they are affected, so will we," she said.

She said the government would consider various policies that would keep our exports from declining.

Industry minister Fahmi Idris said the government would gather inputs from the business community on what would be the best incentive for promoting exports.

He said before the end of this year he hoped the incentive would already be ready.

He said the government meanwhile would soon revise Government Regulation Number 1 of 2007 on tax incentives for certain business sectors and regions.

"There are many sectors that will be added to the list of incentive recipients such as fishery, plantations and others," he said.