Chief Economic Minister Asks Trade Ministry To Boost Exports

Jakarta, Feb 17 (Antara) - Chief Economic Minister Hatta Rajasa has asked Trade Minister Muhammad Luthfi to increase Indonesian exports. "I have asked Trade Minister Luthfi to form a strategy to increase exports," Minister Hatta Rajasa said at the Finance Ministry office here on Monday. Minister Lufthi met with Hatta Rajasa to discuss Indonesia`s economic stability. "I also reminded the trade minister of the possibility that Indonesia`s export value could decline as a result of the issuance of a law on mineral mining and coal (UU Minerba)," Hatta Rajasa said. It was mentioned in the UU Minerba that mining companies were banned from exporting raw materials, as mining products must now undergo processing before being exported. Therefore, Hatta asked the trade minister to work out a strategy to boost exports from other sectors. Luthfi said after the meeting that his staff was now working with stakeholders with regard to the problem. "Hopefully, in the coming one to two days, we will be able to map out the matter so that we can carry it out, as suggested by Hatta," Lufthi said. The Trade Ministry stated early this month that the value of Indonesia`s exports in 2013 had exceeded its target of US$179 billion to reach US$182.6 billion. "That is encouraging and we hope our exports are becoming positive," stated Deputy Trade Minister Bayu Krisnamurthi at a press conference in Jakarta early this month. Bayu explained that non-oil exports, at US$149.1 billion, decreased by two percent compared to the previous year, while oil and gas exports of US$42.6 billion decreased by 11.8 percent, as compared to the previous year. According to Bayu, 2013 was not an easy year, as the world markets were uncertain and have not fully recovered from the economic crisis. "With this performance we can be more optimistic for 2014, because the market is more positive now as exports to United States, Japan and Europe have shown positive signs," he noted. Bayu pointed out that the optimistic views provide an opportunity for Indonesia to improve performance in 2014 since the trade balance in December 2013 was recorded as the largest surplus seen in the last two years, at US$1.5 billion. He added that the largest contributor of the value of exports in December 2013 was mineral fuels, which reached US$2.1 billion, followed by fats and animal and vegetable oil valued at US$1.7 billion, as well as ore, slag and gray metal, at US$975.7 million. "In terms of some commodity products, the largest number of exports came from coal and vegetable fat or palm oil. In addition to this, some of our export commodities experienced a substantial growth in terms of volume or value," he added. Based on data from the Trade Ministry, the value of non-oil exports to several countries that experienced significant increases include Turkey (US$172.8 million), followed by Myanmar, Nigeria, Vietnam, Ukraine and Egypt, which reached a range of between US$88 million and US$184.8 million. For some of the country`s major trading partners, non-oil exports also experienced a similar increase, such as India (US$563.4 million), the United States (US$491 million) and China (US$418.1 million). Several manufactured products contributed significantly to the increases of exports in December 2013, such as non-knitted apparel, which increased to US$81.4 million, or rose by 29.9 percent, and also vehicle manufacturing and spare parts, which increased to US$49 million or rose by 13.4 percent.