ID :
33826
Thu, 12/04/2008 - 11:06
Auther :
Shortlink :
http://m.oananews.org//node/33826
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RI MUST BRACE FOR SHARP DECLINE IN 2009 EXPORTS: MINISTER
Nusa Dua, Bali, Dec 3 (ANTARA)- Indonesia needs to brace itself for a sharp decline in its export trade in light of a projection that the world economy will undergo a 2.5-percent contraction in 2009, Trade Minister Mari Pangestu said.
Speaking to the press after attending a conference on the outlook of Indonesian palm oil in 2009 in Nusa Dua on Wednesday, she said the projection on the world economy's contraction was made by the World Bank.
"It is the first time since 1982 that the World Bank has projected a world economic contraction. Therefore, we must anticipate a sharp decline in Indonesia's foreign trade," she said.
The minister could not yet predict the extent of the downturn in Indonesia's external trade, saying her ministry was still trying to calculate it.
But she said some of Indonesia's export cmmodities could still experience growth. One of them was crude palm oil (CPO) because demand for the product in such export destination countries like India and China was still increasing in proportion to their population growth.
She noted that CPO had so far been one of the commodities that had contributed to Indonesia's export growth as its world market price had steadily increased over the years.
In 2008, the average world CPO price was US$ 600-700 per tonne, or up from US$622 per tonne in 2007 while in 2005 the price was only US$520 per tonne.
Another export commodity that could still grow was coal which was used to generate electricity and difficult to replace as a fuel. However, Pangestu was not sure if the world coal price would remain as a high as it now was.
"I think overseas demand for CPO and coal will remain stable," she said.
World demand for other mineral products such as copper, aluminium, and tin, however, would drop as they were linked to construction, household implement and electronic good industries which were all experiencing a slowdown.
The minister also predicted exports of industrial or manufactured goods, including textiles, would decline and could thus not be expected to support growth in the country's overall exports.
Speaking to the press after attending a conference on the outlook of Indonesian palm oil in 2009 in Nusa Dua on Wednesday, she said the projection on the world economy's contraction was made by the World Bank.
"It is the first time since 1982 that the World Bank has projected a world economic contraction. Therefore, we must anticipate a sharp decline in Indonesia's foreign trade," she said.
The minister could not yet predict the extent of the downturn in Indonesia's external trade, saying her ministry was still trying to calculate it.
But she said some of Indonesia's export cmmodities could still experience growth. One of them was crude palm oil (CPO) because demand for the product in such export destination countries like India and China was still increasing in proportion to their population growth.
She noted that CPO had so far been one of the commodities that had contributed to Indonesia's export growth as its world market price had steadily increased over the years.
In 2008, the average world CPO price was US$ 600-700 per tonne, or up from US$622 per tonne in 2007 while in 2005 the price was only US$520 per tonne.
Another export commodity that could still grow was coal which was used to generate electricity and difficult to replace as a fuel. However, Pangestu was not sure if the world coal price would remain as a high as it now was.
"I think overseas demand for CPO and coal will remain stable," she said.
World demand for other mineral products such as copper, aluminium, and tin, however, would drop as they were linked to construction, household implement and electronic good industries which were all experiencing a slowdown.
The minister also predicted exports of industrial or manufactured goods, including textiles, would decline and could thus not be expected to support growth in the country's overall exports.
