DECLINE IN NON-OIL/NON-GAS EXPORTS UNDERSTANDABLE: OBSERVER

Jakarta, June 2 (ANTARA) - The drop in Indonesia's non-oil/non-gas exports by 7.21 billion dollars last April is understandable as they were affected by the global economic crisis, an observer said.

"The global financial crisis surely has had an impact on Indonesia's exports, particularly on exports to ASEAN member countries and Japan," economic observer Regina J Arsjah said here on Tuesday.

Arjsah said in order to increase the country's non-oil and non-gas exports the government should know what the markets in the export destination countries need.

"We have to know what commodities are needed in destination countries. At the same time we have to carry out productive innovations in our exports," she said.

Regina said that Indonesia should also be well informed about what commodities the destination countries were importing from other countries so as take the correct innovative steps.

"I am sure our handicraft products will be able to compete as long as they are produced in creative ways based on the needs of destination countries," she said.

Indonesia's non-oil and non-gas exports to Japan and members of the Association of Southeast Asian Nations (ASEAN) slumped in the first four months compared to total national exports in the period.

"Non-oil and non-gas exports to Asean were down 28.3 percent while those to Japan fell 28.9 percent," the head of the Central Bureau of Statistics (BPS), Rusman Heriawan, said on Monday.

The country's total non-oil and non-gas exports in the period dropped 22.7 percent compared with exports in the same period last year.

Indonesia's non-oil and non-gas exports to Asean in the first four months reached US$5.617 billion, down from US$7.829 billion in the same period last year.

The country's exports to Japan in the period were worth US$2.278 billion, down from US$2.895 billion in the same period last year.

The country's total non-oil and non-gas exports in the first four months reached US$34.794 billion, he said.***2***