Worsening debt crisis, INDONESIA's EXPORTS to Europe will stagnate

Ministry of Industry worrying the European Union financial problems will affect the Indonesia export to Europe. Because, Greece's debt problems spread to other countries in Europe which has the potential to expand the region's financial crisis.

"For me Europe is not too optimistic. Especially if you look at the debt structure of large countries," said Director General of International Cooperation Ministry of Industry Industry, Agus Tjahayana.

According to him, Greece's debt problems will be difficult to prolonged unresolved because the three countries, namely Germany, France, and Britain is expected to help bail out Greece's debt was in trouble. In fact, Germany was difficult to expand its export market as China slammed aggression. "The possibility of its condition deteriorated," he said.

In fact, Indonesia's exports to the EU during the period 2007-2010 recorded an average increase of 9%. That number exceeds the import of industrial products from Europe which reached 8%. In 2010 Indonesia's trade balance with the EU surplus of U.S. $ 4.5 billion.

The amount was donated processed coconut or palm oil with a market share of 20%, textiles and textile products 14.5%, electronics 10.5%, 10.5% of processed rubber, and footwear or shoes 8%.

In fact, certain products have increased sharply as exports of other chemical products rose 147%, 59.4% of other commodities, cigarettes rose by 28.7%, and sports equipment 26.5%.

Unfortunately, the market penetration of industrial products to the EU is still relatively low with an average of about 0.5%. It is actually according to Agus could be an opportunity to expand market share of Indonesian exports. However, the region's financial condition would likely delay the planned expansion of Indonesia's exports.

"It is possible that down then the condition will remain stagnant because Europe needs these commodities," he said.

As with the financial problems the United States. According to Agus, the condition of the country was not too worried because the position of United States economic growth which is growing despite the crisis.

Country's internal political problems that make the financial problems the United States as unresolved. However, he believes, the country will find the solution of the problem.

As a result, most likely the United States - Indonesia trade will be stagnant for some time. Even if rising then the condition is a result of the appreciation of the yuan currency, the rupiah (IDR), Singapore dollar, ringgit, baht and peso. "The effect would be all for all countries for the same commodity," he said.

Indonesia Trade Minister Marie Elka Pangestu also ever mentioned her concern at the condition of the European Union's financial problems. "Compared to the United States, we are more worried about conditions in Europe," she said.

To maintain the level of Indonesia exports due to the decline in market share in both areas, Marie expressed, should be done by enhancing competitiveness, increasing diversification of export markets, and minimize the high cost.

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2011, targeted Coffee Exports Increase 5%

Ministry of Trade, Republic of Indonesia is targeting for increasing the coffee export by five percent this year. International prices predicted relatively well this year.

Coffee production for this year is estimated to increase to 570 thousand tons from 540 thousand tons in 2010. "In addition, market penetration into China as well as new markets improved," said Trade Minister Mari Elka Pangestu, the Ministry of Trade, Jakarta, Wednesday (05/01/2011).

Furthermore, Mari said, it also targets exports of footwear increased by 20 percent next year. Because the development of non-traditional markets, especially in Central Asia and Eastern Europe namely Russia, Ukraine, and Kazakhstan has begun to recover. In addition, the increase in exports was also motivated by the commencement of production by some manufacturers who do relocate to Indonesia and also lower costs for state employees compared to competitors.

Mari explain, automobile exports is also targeted to increase 10 percent this year. It would improve the promotion and expansion of automotive export markets to the FTA partner countries and other countries. "Meanwhile, increased investment in this sector is also increasingly driven," says Mari.

As for the export of crude palm oil sector, said Mari, also targeted to increase by 16 percent this year. The reason, she said, in addition to the primary purpose of export markets namely China, European Union, and India, several other markets in the Middle East and Eastern Europe are also considered to potentially large.

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Indonesia will Import 250,000 Tons of Rice

Indonesia will add as much as 250,000 tons of rice imports to ensure food security in the country, as said by Coordinating Minister Hatta Rajasa, after opening the "Indonesian Palm Oil Conference and Outlook 2011," in Nusa Dua, Bali, on Thursday (02/12/2010), respond to question reporters about the government's plan to import rice from Thailand. "Yes there is the additional 250,000 tons more. Details please asked to Bulog," he said.

Import is in addition of previous imports amounted to 600,000 tons.

Added, Deputy Coordinating Minister for Economic Affairs, Agriculture and Marine, Diah Maulida said that rice to import to Bulog it will import from Thailand with the outbreak of the kind of premium rice (broken) five percent. "Not exactly 250,000 tons, but close to it," se did not give the exact figure the amount of rice imports by Indonesia.

She asserted that these imports are in addition to the previous rice imports of 600,000 tons, which had already in Indonesia. The price of rice to be imported, the recognition is more expensive, because it included the category of premium rice. Diah said that if imports would realized by the end of this year, then the total rice imports reached 850,000 tons.

As of September, Indonesia's export value rose 38.3%

Indonesia's export performance during the first nine months this year rose 38.3% to USD 110.8 billion over the same period last year. In fact, as of September performance was also better before the global crisis sweeping the world in 2008 ago, which just posted an increase of 12.3%. This achievement was launched by the Board of Research and Development, Ministry of Trade (Kemdag) which released today, Thursday (25/11).

The Research and Development of Ministry of Trade also quoted Trade Watch from the World Bank that assesses Indonesia's exports in the second quarter, including three best of the 60 countries. This report shows, in the second quarter of this year, only three countries that can improve the performance of exports exceeded the export performance before the global crisis; namely China, Hong Kong and Indonesia.

China recorded can increase its export value up 14.7% while Indonesia was 4.9% compared to the value of exports during the same period in 2008. Meanwhile, Hong Kong recorded the highest increase in export value far beyond China and Indonesia, which amounted to 20.8%.

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Indonesian fertilizer imports continue to rise

In January-September 2010 there was an increase of fertilizer imports to Indonesia. The highest import demand was due to increased fertilizer consumption directly and also for raw materials fertilizer plant.

"The need for fertilizer industry also rose while raw materials such as potassium and phosphate were imported," said Deddy Shaleh, Director General of Foreign Trade, Ministry of Commerce in Jakarta, Friday (12/11). According to him, the import of fertilizer is needed because there are some raw materials can not be produced domestically.

Based on data from Central Statistic Agency (BPS), Indonesia fertilizer imports from January to September 2010 stated at USD 1.065 billion. This figure rose 77.81% compared to the imports of fertilizers in the same period last year amounted to USD 599.365 million.

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Indonesian Exports increase 9.76 per cent

The Indonesian exports increase 9.76 per cent in August 2010 with value reached US$ 13.71 billion, compare to the exports in July 2010. If compared to exports on August 2009 is increasing of 29.99 percent.

Non-oil/non-gas exports on August 2010 has reached US$ 11.77 billion, rose 10.94 percent compared to July 2010, whereas compared to August 2009 exports increased by 32.35 percent.

The cumulative value of Indonesian exports from January to August 2010 reached US$ 98.71 billion, an increase 40.42 percent over the same period in 2009, while non-oil exports reach US$ 81.73 billion, an increase of 36.25 percent.
The largest increasing of non-oil exports in August 2010 is coming from animal fats & oils / vegetable at US$ 1.1 billion, while the largest decline occurred in the ore, scale, and ash for metals at US$ 80.0 million.

Non-oil exports to Japan in August 2010 is the largest number of US$ 1.40 billion, followed by China US$ 1.24 billion and the United States US$ 1.14 billion, with the contribution of all three reached 32.17 percent. While exports to the European Union (27 countries) around US$ 1.62 billion.

By sector, industrial product exports from January-August 2010 rose by 34.66 percent compared to same period of 2009, as well as exports of agricultural products rose 15.84 percent and exports other mining products rose 47.35 percent.

Source: Indonesia Central Statistics Agency (BPS) / picture:google.com