RI EXPORT COMMODITY PRICES EXPECTED TO DROP 50 PCT

Semarang, Indonesia, April 3 (ANTARA) - Industry Minister Fahmi Idris said according to his estimates, the prices of Indonesian export commodities would drop by up to 50 percent this year due to the global economic crisis.

"The decline in the prices of export commodities is a worldwide trend," the minister said after attending a communication forum among industry ministry/relevant ministry officials and businessmen at the Patra Jasa Hotel here on Friday.

He said the commodities whose prices were going down included rubber, oil palm, coffee and cocoa. Rubber prices were particularly affected by the world oil price developments.

"If world crude prices decline, rubber will become helpless but if the crude prices increase, the rubber price will also increase extraordinarily," the minister said.

He said that the rubber price increased exceptionally when there was an increase in the crude prices because rubber was made as an alternative choice for several products which so far derived from crude.

Now, the prospect is lying ahead for shoes, electronics and furniture. "The exhibition in China shows even brighter prospect than it used to be," the minister said adding that market players were convinced that they would be able to maintain their market.

Touching on the raw materials for products processed at home, the minister said that there were a number of commodities whose raw materials still needed to be imported. ***