Jakarta sees drop in gas, non-oil exports.
Indonesia's trade minister said export volumes for non-oil and gas are set to fall 20-30 per cent this year from last year as global trade slows.
Earlier this month, Trade Minister Mari Pangestu said Indonesia's non-oil and gas export growth target had been revised to below 4.3 per cent for this year. Yesterday she said the outlook was worse, according to a report in our sister newspaper Gulf Daily News.
'Based on container flow for January-February, exports volume this year may decline by between 20 to 30 per cent.
Non-oil and gas exports are expected to fall,' Pangestu said.
She said that exports of automotive products and electronics would be worst hit.
Car exports through the Jakarta International Container Terminal, the country's largest shipping terminal, fell to 9,391 units last month, from 13,000 units in December last year, Pangestu said, representing a decline of about 27 per cent.
Earlier this week, Pangestu said that growth in total exports would slow to just 1-2.5 per cent this year, from about 20 per cent last year. The government had previously forecast total exports would grow 5 per cent this year.
The government has proposed a 71.3 trillion rupiah ($6.1 billion) fiscal stimulus package to counter the effects of a global economic slowdown, and expects economic growth to slow to between four and 5 per cent, from an estimated 6.2 per cent last year.
While Indonesia's economy is less dependent on exports than some other Asian countries, millions of Indonesians are employed in export-related sectors and the prospect of big job losses is a concern for the government ahead of general election.
Indonesian exports include palm oil, tin, coal, copper, and rubber, and prices for many of these commodities have slumped.
Indonesia reported that exports fell 20.6 per cent to $8.69 billion in December from a year ago, the biggest drop in seven years.
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