Total 2006 exports may hit $100 billion

The Jakarta Post, Jakarta

Trade Minister Mari Elka Pangestu says she is upbeat that the total value of the country's exports in 2006 surpassed the US$100 billion mark, representing a 17.6 percent increase over the $77.5 billion recorded in 2005.

She said her belief was based on increasing commodities prices and the higher contribution of manufacturing products.

"The value of Indonesia's exports during the first 11 months of last year had already reached $91.2 billion. With an average monthly value of more than $8 billion, I think last year's total export value exceeded $100 billion," Mari told reporters Wednesday.

She added that the actual export figures for December would be announced later this month.

Mari said that besides the higher prices for a number of commodities, such as rubber, palm oil and gold, Indonesian export earnings had also been enhanced by manufactured exports, which contributed 67.5 percent to the value of the nation's total exports.

Indonesian's textile exports during the January-November period grew by 10.5 percent, footwear by 13.7 percent, automotive components by 28.5 percent, and iron and steel by 79.8 percent.

Mari said that if the trend continued, Indonesia's exports would likely grow by up to 19 percent this year.

"We will try to sustain the export growth of between 17 and 19 percent recorded over the last two years," she said. "At least we will be able to meet the government's target of between 8 and 10 percent growth as stated in the mid-term development plan."

She said the challenge for the future was how to maintain the investment climate in Indonesia and continue to encourage new investment in those sectors that could augment Indonesian exports in the coming years.

She added that her ministry would also continue to encourage exporters to target prospective markets, such as the Middle East, which was experiencing a construction boom.

"Construction services and related products, such as furniture, have good potential there," she said.