ID :
42546
Sat, 01/24/2009 - 19:28
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https://www.oananews.org//node/42546
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VP: RI STILL EXPORTING BECAUSE GOODS ARE PRIMARY COMMODITIES
Padang, Jan 24 (ANTARA) - Vice President Jusuf Kalla said Indonesia was lucky in that amid the current global crisis it was still exporting primary commodities for which world demand had not dropped significantly.
He admitted that the country's exports to the US and other countries exporting to the US such as China and Japan had dipped but because the country's exports were basic necessaries they continued to be needed, particularly in the US.
"Americans will never stop drinking coffee or eating chocolate regardless of the stressful conditions in which they now live," he said.
Americans might stop buying cars or houses but they could not stop eating and would always need cooking oil, peanuts and gas, Kalla said . adding "what Indonesia exports is what the US cannot do without."
Therefore, he said, the country's exports had not dropped much in volume. What had dropped was their prices. But the prices of Indonesian export goods had dropped after a period in which they rose sharply, he said.
Citing an example. Kalla said the price of crude was now US$40 per barrel but a few months ago it reached the record level of US$140 per barrel.
He said as the price of crude had dropped, the price of palmoil had also fallen and so had the prices of other commodities. But the prices only began to decline in June 2008 while price levels in early 2009 were still better than in 2006.
This meant the country's economic condition would just return to the 2006 level, he said, noting that the price of oil palm fresh fruits had now risen again to Rp900 to Rp1,000 per kilogram or to the same level as in 2007.
Kalla consequently believed oil palm plantations in Sumatra were having no problems because their produce remained to be exported although at lower prices.
He admitted that the country's exports to the US and other countries exporting to the US such as China and Japan had dipped but because the country's exports were basic necessaries they continued to be needed, particularly in the US.
"Americans will never stop drinking coffee or eating chocolate regardless of the stressful conditions in which they now live," he said.
Americans might stop buying cars or houses but they could not stop eating and would always need cooking oil, peanuts and gas, Kalla said . adding "what Indonesia exports is what the US cannot do without."
Therefore, he said, the country's exports had not dropped much in volume. What had dropped was their prices. But the prices of Indonesian export goods had dropped after a period in which they rose sharply, he said.
Citing an example. Kalla said the price of crude was now US$40 per barrel but a few months ago it reached the record level of US$140 per barrel.
He said as the price of crude had dropped, the price of palmoil had also fallen and so had the prices of other commodities. But the prices only began to decline in June 2008 while price levels in early 2009 were still better than in 2006.
This meant the country's economic condition would just return to the 2006 level, he said, noting that the price of oil palm fresh fruits had now risen again to Rp900 to Rp1,000 per kilogram or to the same level as in 2007.
Kalla consequently believed oil palm plantations in Sumatra were having no problems because their produce remained to be exported although at lower prices.
