Despite record 2005 export earnings, a closer look at the trade statistics suggests the country's manufacturers are having a tough time competing overseas, particularly against more efficient manufacturers from other countries in the region.
The Central Statistics Agency (BPS) reported last week that the country's export earnings jumped by 19.53 percent from the 2004 figure to a record US$85.6 billion.
But according to a more detailed BPS report obtained by The Jakarta Post on Monday, volume-wise, exports only grew by 10.09 percent last year.
Dantes Simbolon, the head of the BPS export statistics subdirectorate, explained that soaring global commodity prices had contributed greatly to the at-first-sight impressive performance.
By volume, oil and gas exports were down 8.6 percent, while non-oil and gas exports, including minerals but excluding coal and sand, increased by 13.1 percent, the BPS figures show.
What is worrying is that in the manufacturing sector, exports of textiles and garments, furniture and electronics have dropped in volume terms. These sectors are among the largest contributors to export revenue and job creation.
Textile and garment exports, for example, only amounted to 1.03 million tons as of October 2005, while exports of these goods reached 1.63 million tons the previous year.
The last two months of 2005 would not have added much to the figures as the year-end is always slower for export-oriented businesses.
Left struggling by China's booming textile and garment industry, Indonesian exports of these products failed to achieve the targeted figure of $7.9 billion, and grew by less than 5 percent last year.
The industry has been plagued by overlapping problems of increasing energy costs, smuggling and aging machinery.
The Indonesian Textile Association reported that 77 export-oriented firms had ceased operating because of increasing energy costs and eroding markets due to a slump in competitiveness.
Meanwhile, exports of wood products and furniture dropped to 3.2 million tons last year as compared to 5.3 million tons in 2004.
The Indonesian Furniture Producers Association placed the blame for the decline on a lack of raw materials and soaring prices for teak -- which is heavily used in the production of furniture destined for export.
Meanwhile, producers of electronic goods complain of the high import duties imposed on components, leading to a lack of price competitiveness on the export market.
This led to a decline in electronics exports to 0.5 million tons last year compared to 0.67 million tons in 2004.
Indonesian Chamber of Commerce and Industry vice chairman Rachmat Gobel said the government needed to further lower the import duties on raw materials for the electronics sector in order to restore competitiveness.
Given the myriad of complaints from the private sector, observers say it is clear the government needs to be more alert in responding to changes in the global market if it wants Indonesia to maintain its place among the ranks of the emerging economies.
Source:
The Jakarta Post, Jakarta
February 07, 2006
PowerPR alert on Indonesia
- ‘UNIQLO Goes to School’ Bekali Siswa di Surabaya Memasuki Industri Ritel - 8/28/2017
- British Company Churchill Mining Plc Published False Information And Blackmails Indonesian Government - 10/18/2012
- Indonesia Stands Firm in Churchill Mining Dispute - 9/26/2012
- Indonesia vs Churchill Mining: Churchill has never secured a Mining Business License in Indonesia - 9/24/2012
Indonesia News
- New Indonesia sovereign wealth fund to invest $20 billion in projects - Reuters - 2/24/2025
- Indonesia’s New Danantara Investment Fund Readies for Launch - Bloomberg - 2/23/2025
- Indonesia's Prabowo Subianto officially establishes new sovereign wealth fund - Deccan Herald - 2/24/2025
- Indonesia’s budget battles sink its aircraft-carrier dreams - South China Morning Post - 2/24/2025
- Shariah court in Indonesia sentences 2 men to up to 85 lashes for having gay sex - The Associated Press - 2/24/2025
Indonesia Business News
- Conference calls for fair, transparent critical mineral supply chains - Indonesia Business Post - 2/24/2025
- Indonesia's New Danantara Investment Fund Readies for Launch - Financial Post - 2/23/2025
- RANKINGS: ALB Indonesia Rising Stars 2025 - Legal Business Online - 2/24/2025
- Indonesia launches new multi-billion-dollar sovereign wealth fund - Inquirer.net - 2/24/2025
- Danantara: Indonesia's New Strategy to Manage State Assets - Jakartaglobe.id - 2/24/2025
Indonesia Economy
- Indonesia launches new multi-billion-dollar sovereign wealth fund - Yahoo Finance - 2/24/2025 -
- US High School Economics class. ‘The Opec of nickel’: Indonesia’s control of a critical metal - Financial Times - 2/23/2025 -
- Goldfinch Stakes Claim in Indonesian Creative Economy With Government-Backed Venture (EXCLUSIVE) - Variety - 2/19/2025 -
- Indonesia launches Danantara sovereign wealth fund: 5 things to know - Nikkei Asia - 2/24/2025 -
- ASEAN, Japan, and UNDP Convene Blue Innovation Expo Connecting Investors and Innovators to Accelerate Blue Economy in ASEAN and Timor Leste - UNDP - 2/20/2025 -
Indonesia Group of Company
- Indonesia-Vietnam collaborate to set up dairy farm in Poso for national nutrition program - Indonesia Business Post - 10/29/2024 -
- Saliran Group to set up office in Jakarta to support expansion in Indonesia - theSun - 2/19/2025 -
- ZC Rubber’s Indonesia Factory Rolls Out First All-Steel Radial Tire - Traction News - 10/25/2024 -
- Indonesia-Geely Auto Group discuss EV, methanol-powered vehicle development - Indonesia Business Post - 12/27/2024 -
- Geological Agency-Eramet Group partner to advance EV ecosystem - Indonesia Business Post - 10/5/2024 -
Indonesia Finance
- Indonesia launches new multi-billion-dollar sovereign wealth fund - Yahoo Finance - 2/24/2025 -
- Indonesia's New Danantara Investment Fund Readies for Launch - Financial Post - 2/23/2025 -
- Banking as a Service Drives Financial Inclusion in Indonesia - Indonesia Business Post - 2/21/2025 -
- Indonesia's Ministry of Finance issues regulation to implement BEPS 2.0 Pillar Two - Tax News Update: Global edition - 1/28/2025 -
- Some Indonesia lawmakers eye removing central bank governor, Tempo magazine reports - Reuters - 2/17/2025 -
Indonesia Banking - News
- Banking as a Service Drives Financial Inclusion in Indonesia - Indonesia Business Post - 2/21/2025 -
- SME loan exposure raises Bank Rakyat Indonesia’s asset risk - Asian Banking & Finance - 2/24/2025 -
- Indonesia's BNI-backed Hibank launches digital banking app for SMEs - DealStreetAsia - 2/23/2025 -
- M&A in the banking sector: Key themes for 2025 | Indonesia | Global law firm - Norton Rose Fulbright - 1/29/2025 -
- Now AI Can Bypass Biometric Banking Security, Experts Warn - Forbes - 12/4/2024 -
Indonesia Investment - News
- New Indonesia sovereign wealth fund to invest $20 billion in projects - Reuters - 2/24/2025 -
- Indonesia to Send $20 Billion to Newly Created Investment Agency - Yahoo Finance - 2/24/2025 -
- Danantara Indonesia launches $20B investment plan By Investing.com - Investing.com - 2/24/2025 -
- Indonesia Investment Authority to be separate entity from wealth fund Danantara, chief says - TradingView - 2/24/2025 -
- Indonesia launches new sovereign fund - China Daily - 2/24/2025 -
Indonesia Capital Market - News
- (PDF) Empirical Test of the Capital Asset Pricing Model (CAPM): Evidence from Indonesia Capital Market - ResearchGate - 12/12/2024 -
- Live market news, research and portfolio - Capital Market Publishers India Pvt Ltd - 2/21/2025 -
- Indonesia opens carbon trading to global market, faces challenges in “boosting interest” - Indonesia Business Post - 2/21/2025 -
- Indonesia: OJK's New Regulation on Investigation of Crimes in Financial Services Sector - InsightPlus - 4/6/2024 -
- Live market news, research and portfolio - Capital Market Publishers India Pvt Ltd - 9/19/2024 -
Indonesia State-Owned Company - News
- Indonesia to Send $20 Billion to Newly Created Investment Agency - Yahoo Finance - 2/24/2025 -
- UAE eyes major housing investment in Indonesia to help address housing shortage - Indonesia Business Post - 2/20/2025 -
- Indonesia lauds Vinfast’s green development goals - http://en.vietnamplus.vn/ - 2/23/2025 -
- Danantara to be Launched Today: Investment in State Assets, Targeting US$900 Billion - Tempo.co English - 2/24/2025 -
- SOEs boost contributions to national economy, surpassing pre-pandemic levels - Indonesia Business Post - 7/15/2024 -
Indonesia Mining
- US defense think tank warns of China’s grip over Indonesian nickel industry - Mongabay.com - 2/20/2025
- Conference calls for fair, transparent critical mineral supply chains - Indonesia Business Post - 2/24/2025
- China-backed $3 billion Indonesia nickel smelter risks shutdown - MINING.com - 2/20/2025
- Photo Essay: Indonesia’s Decarbonization Tipping Point - New Security Beat - 2/20/2025
- Indonesia amends controversial mining law - UCA News - 2/19/2025
Indonesia Energy - News
Indonesia Airlines - News
Indonesia Infrastructure - News
Indonesia Shipping and Cargo - News
Indonesia AgriBusiness
Indonesia Entrepreneurship
Indonesia Corporation
Reuters: Business News
Strategic Indonesia
Indonesia Law Enforcement
Indonesia Corruption - News
Indonesia Money Laundering Update
Indonesia Reform Update
Indonesia Religion Issues
Indonesia Security Issues
Indonesia Politics Issues
Indonesia Election 2009 Issues
Indonesia Education Update
Tuesday, February 07, 2006
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment