Non-Oil And Gas Exports To Exceed US$125 Billion This Year

Ministry of Industry is optimistic the exports of non oil and gas processing industry to exceed US$125 billion this year.

The export contribution of non oil and gas industry (manufacture) to Indonesia’s total exports in 2011 is equal with its contribution last year, The Industry Ministry's International Industrial Cooperation Director General Agus Tjahjana said.

The exports of manufacture industry reached US$98 billion or 62.42% from the total export of US$157 billion.

Last year, he estimated the export value of manufacture industry in 2011 to be able to reach US$124.84 billion of total export this year of US$200 billion.

According to the Central Agency of Statistics (BPS), the non oil and gas contributed export value of US$82 billion until August or 60.83% from the total export of US$134.8 billion in the same period.

Thus, manufacture industry will only contribute an export value of US$121.66 billion until the end of the year.

The export of manufacture industry will grow higher in the next four months, helping it to reach the export target of US$124.84 billion.

He added that the global economic crisis will not affect Indonesian export in the fourth quarter 2011.

The financial crisis in European Union (EU) will drop demands from EU and US in the first-half 2012.

“We also need to pay close attention to our export performances to EU and US, which only share 10.9% and 9% of the total exports of non oil and gas industry,” Agus said.

Growing 6.98%

BPS stated that non oil and gas processing industry grew 6.98% in third quarter 2011 compared to the same period a year earlier.

Basic metal, iron and steel industry grew 11.42% or the highest, while the growth of paper and printing industry was at the bottom with -1.22%.

Meanwhile, food, beverage and tobacco industry grew 8.34%, the cement industry and non-metallic mineral products 8.28%, as well as transport equipment, machinery and its equipment 7.77%.

Regarding the statistics, he believed manufacture industry will reach the growth target of Ministry of Industry at 6.5%.

The production of manufacturing industry will also increase although Indonesian exports weaken in the fourth quarter 2011.

The growth of manufacture industry is still supported by the higher contribution of domestic consumption to Indonesia’s gross domestic product.

Chairman of Indonesian Food and Beverage Association (Gapmmi) Adhi Lukman said food and beverages exports will grow 15% this year from US$3.2 million in 2010.

The global crisis will potentially impact the exports next year as some overseas buyers have started to review their contracts with the manufacturers of food and beverages in Indonesia.

He added that food and beverages industry will not grow beyond 10% next year due to weakening markets in developed countries.

He insisted the food and beverages industry should remain cautious against the financial crisis impact although the exports to US and EU are smaller compared to total exports of Indonesia’s food and beverages.

The national food and beverages manufacturers are currently eyeing alternative markets like the Middle East and Africa.