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
- With Indonesia and the US wavering on climate goals, early coal plant retirements in doubt - Eco-Business - 2/24/2025 -
- PLN, University of Dundee, and SKK Migas Collaborate on Energy Transition Public Lecture - SolarQuarter - 2/24/2025 -
- Navigating Indonesia’s Energy Transition Amid Global Partnership Shifts - US-ASEAN Business Council - 2/19/2025 -
- 35 French firms explore investment opportunities in Indonesia’s energy sectors - Indonesia Business Post - 2/20/2025 -
- French Firms Explore Opportunities In Indonesia’s Energy Sector - Evrim Ağacı - 2/20/2025 -
Indonesia Airlines - News
- Singapore Airlines Ignites A Global Odyssey With Unstoppable Flight Savings And Exclusive Upgrades For Hong Kong, Singapore, Malaysia, Indonesia, Australia, Thailand, Maldives, Sri Lanka, And India - Travel And Tour World - 2/22/2025 -
- Indonesia's Rimbun Air leases first ATR72-600 - ch-aviation - 2/20/2025 -
- BBN Airlines Indonesia shifts focus to ACMI business model - TravelDailyNews Asia-Pacific - 2/19/2025 -
- Mount Dukono erupts in Indonesia; aviation warning issued | VIDEO - Mathrubhumi English - 2/20/2025 -
- Saudia Airlines Launches Direct Flights from Bali to Jeddah Starting March 2025 - Indonesia Expat - 2/21/2025 -
Indonesia Infrastructure - News
- Indonesia Revamps Export Processes And Infrastructure - Evrim Ağacı - 2/20/2025 -
- Prabowo encourages Indian investment in Indonesia's infrastructure, technology sectors - Indonesia Business Post - 1/30/2025 -
- Indonesias Central Java Governor prioritizes infrastructure, poverty - ANTARA English - 2/20/2025 -
- IIF in Stockholm exhibits renewable energy, sustainable infrastructure opportunities - Indonesia Business Post - 10/24/2024 -
- Entertainment Financier Goldfinch Announces Joint Venture to Transform Indonesia’s Creative Economy - Jakartaglobe.id - 2/19/2025 -
Indonesia Shipping and Cargo - News
- Indonesian Samudera nickel cargo ship hijacked off Somalia - Hiiraan Online - 3/18/2011 -
- 17 missing in Indonesia fishing boat, cargo ship collision - OrissaPOST - 4/4/2021 -
- FCL Shipping: How Full Container Load Freight Shipping Works (2024) - Shopify - 11/12/2024 -
- 17 missing in Indonesia fishing boat, cargo ship collision - Khaleej Times - 4/4/2021 -
- Fire Breaks Out In Engine Room Of Cargo Ship Off Taiwanese Coast, 4 Injured - Marine Insight - 1/6/2025 -
Indonesia AgriBusiness
- Bogus advert for govt farming job spreads in Indonesia - Yahoo - 2/24/2025 -
- Figure 3. Value chain of cattle, meat, and offal in Indonesia [2]. - ResearchGate - 10/26/2024 -
- Indonesia bolsters financing for agriculture, fisheries enterprises - vietnamnews.vn - 1/21/2025 -
- Agricultural Transformation Starts in the Backyard - United Nations in Indonesia - 10/27/2021 -
- Indonesia Targets 32 Million Ton Rice Production, Aims to End Imports by 2025 - Jakartaglobe.id - 11/26/2024 -
Indonesia Entrepreneurship
- Creative Entrepreneurship Guide: 5 Tips for Business Owners (2025) - Shopify - 2/20/2025 -
- Changan Auto set to enter Indonesian market in partnership with Indomobil - Indonesia Business Post - 2/24/2025 -
- Indonesia Launches Gemini Academy to Empower SMEs with AI and Boost Global Competitiveness - SME Magazine - 2/24/2025 -
- Russian Official Visits Indonesia and Malaysia to Talk Defense, Russian Agencies Report - Tempo.co English - 2/24/2025 -
- Indonesia targets first nuclear power plant by 2032 - Indonesia Business Post - 2/24/2025 -
Indonesia Corporation
- US defense think tank warns of China’s grip over Indonesian nickel industry - Mongabay.com - 2/20/2025 -
- IBC named investment holding for new energy materials - Indonesia Business Post - 2/20/2025 -
- Student protests have erupted in Jakarta as Indonesia's government cut budgets - ABC News - 2/20/2025 -
- Call for Corporate Sponsors for Europe Day 2025 Jakarta - EEAS - 12/17/2024 -
- Indonesia, eight other nations granted BRICS partner status - Indonesia Business Post - 12/27/2024 -
Reuters: Business News
- 👉 A major cyber attack under way. A sophisticated state-based actor is targeting all levels of Australian government and a range of... via Hvper.com - 6/19/2020
- 👉 Police officers shoot and kill Los Angeles security guard: 'He ran because he was scared' via Hvper.com - 6/19/2020
- 👉 People Are Filming Creepshots of Women at BLM Protests via Hvper.com - 6/19/2020
- 👉 "I want you to look me in my eye and say that you're sorry": Man who lost his eye protesting says he demands a response from the mayor via Hvper.com - 6/19/2020
- 👉 Facebook Removes Trump Political Ads With Nazi Symbol. Campaign Calls It An 'Emoji' via Hvper.com - 6/19/2020
Strategic Indonesia
- Pembunuhan Karakter BI - 3/1/2008 - Christovita Wiloto
- Strategi Energi Indonesia - 11/12/2007 - Christovita Wiloto
- Rasa Sayange - 10/26/2007 - Christovita Wiloto
- Spiderman - 5/25/2007 - Christovita Wiloto
- May Day - 5/4/2007 - Christovita Wiloto
Indonesia Law Enforcement
- Community Policing Enhances Safety Across Indonesia - Evrim Ağacı - 2/20/2025 -
- Illegal seabed dredging surges as Indonesia resumes sand exports - Mongabay.com - 2/20/2025 -
- Operating officers in “Sambo Case” and their controversial promotion - Indonesia Business Post - 2/21/2025 -
- Indonesian Police Units Provide Vital Aid To Vulnerable Citizens - Evrim Ağacı - 2/20/2025 -
- Indonesian Police Intensify Crime Fighting Efforts - Evrim Ağacı - 2/22/2025 -
Indonesia Corruption - News
- Exclusive: Indonesia opposition leader cries out hours before arrest - Asia Times - 2/22/2025 -
- Indonesia's corruption perception index improves, but concerns over political corruption persist says ICW - Indonesia Business Post - 2/17/2025 -
- KPK names former Semarang mayor, husband corruption suspects - Indonesia Business Post - 2/20/2025 -
- KPK searches PDI-P Secretary General's house amid ongoing bribery probe - Indonesia Business Post - 1/6/2025 -
- ‘Peringatan Darurat’: Youth-led protest against corruption and nepotism in Indonesia - Global Voices - 9/10/2024 -
Indonesia Money Laundering Update
- Indonesia's Danantara Might Meet the Same Fate as Malaysia's 1MDB; What is 1MDB? - Tempo.co English - 2/24/2025 -
- Indonesia: OJK's New Regulation on Investigation of Crimes in Financial Services Sector - InsightPlus - 4/6/2024 -
- Indonesian wanted man among those arrested in raided Bataan BPO - GMA News Online - 11/4/2024 -
- CPIB arrests man over corruption case in Indonesia; suspect says he has diplomatic passport - The Straits Times - 1/24/2025 -
- TIMELINE: Alice Guo's secret escape from PH and arrest in Indonesia - ABS-CBN.COM - 9/4/2024 -
Indonesia Reform Update
- Indonesia calls for multilateral reform at G20 foreign ministers meeting - The Star Online - 2/24/2025 -
- Agrarian reform key to Indonesias industrial progress: BP Taskin - ANTARA English - 2/20/2025 -
- Dark Indonesia: The New Student Movement Stirring in Southeast Asia - New Bloom Magazine - 2/20/2025 -
- Trump 2.0 Can Mean Profit for ASEAN But Indonesia Needs to Make Domestic Reforms - Jakartaglobe.id - 2/19/2025 -
- Indonesia urges G20 to strengthen global governance reform - ANTARA English - 2/21/2025 -
Indonesia Religion Issues
- An interfaith journey - Inside Indonesia - 2/23/2025 -
- Shariah court in Indonesia sentences 2 men to up to 85 lashes for having gay sex - Times Colonist - 2/24/2025 -
- Indonesia amends controversial mining law - UCA News - 2/19/2025 -
- France Interested in Learning Religious Tolerance from Indonesia - Universitas Gadjah Mada - 10/29/2024 -
- 10 Best Civ 6 Leaders For A Religious Victory - Screen Rant - 1/10/2025 -
Indonesia Security Issues
- Russian official visits Indonesia and Malaysia to talk defence, Russian agencies report - Reuters - 2/24/2025 -
- 2024 UNODC Supports Indonesian Customs Officers to Enhance Border Security Through Chemical Detection Training - UNODC - 2/20/2025 -
- Photo Essay: Indonesia’s Decarbonization Tipping Point - New Security Beat - 2/20/2025 -
- Russia's security chief to visit Indonesia, Malaysia this week for talks - CNA - 2/24/2025 -
- Indonesia Ensures Food Security Ahead Of Ramadan 2025 - Evrim Ağacı - 2/19/2025 -
Indonesia Politics Issues
- Indonesia’s election year: looking back - Inside Indonesia - 2/24/2025
- Civil society groups spark nationwide protests against Prabowo's policies, criticizing budget cuts and biasness - Indonesia Business Post - 2/24/2025
- South China Sea in focus as Indonesia hosts naval drills - DW (English) - 2/20/2025
- ‘Dark Indonesia’ for Prabowo amid major protests against costly policies - South China Morning Post - 2/19/2025
- Exclusive: Indonesia opposition leader cries out hours before arrest - Asia Times - 2/22/2025
Indonesia Election 2009 Issues
- Indonesian President Is Projected to Win Election (Published 2009) - The New York Times - 7/8/2009 -
- The Aceh Party - Inside Indonesia - 7/12/2009 -
- Third body found near Freeport Indonesia mine - RFI - 7/13/2009 -
- Figure 1: Model of State-Market-Civil Society-Media interactions as an... - ResearchGate - 4/1/2018 -
- DECODING THE INDONESIAN ELECTION - substack.com - 5/11/2009 -
Indonesia Education Update
- Students stage ‘Dark Indonesia’ protests as Prabowo Subianto’s spending cuts hit education - Financial Times - 2/22/2025 -
- Bahasa Indonesia Thrives Through Education And Media Initiatives - Evrim Ağacı - 2/22/2025 -
- Prabowo replaces higher education minister in first cabinet reshuffle - The Jakarta Post - 2/19/2025 -
- Student protests have erupted in Jakarta as Indonesia's government cut budgets - ABC News - 2/20/2025 -
- Indonesia President Prabowo replaces controversial minister in first Cabinet change - CNA - 2/20/2025 -
Tuesday, February 07, 2006
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