RI to maintain exports to S Korea at US $10 billion

Jakarta (ANTARA News) - Indonesia will maintain the value of its exports to South Korea in 2009 at US$10 billion, Trade Minister Mari Pengestu said. 

"Indonesia`s exports to South Korea until November 2008 were recorded at US$9 billion. It may possibly be close to US$10 billion until December," Pangestu said after the opening of "Indonesia-Korea CEO Business Dialogue" here on Saturday. 

She said Indonesia would focus on increasing the volume rather than the value of its exports with regard to the eight memorandums of understanding signed by the two countries that day. 

"With the MoUs we are not talking about increasing export value but how to maintain the export volume," she said. 

She admitted that the growth of trade between Indonesia and South Korea was quite high. However the country`s imports from that country were still twice its exports. 

"Indonesia`s exports to South Korea grew around 30 percent. Its imports however are even higher almost twice the figures," she said. 

She said this happened because South Korean investment was rising. The biggest imports are electronic components and raw materials needed by South Korean companies in the country. 

"So they are not finished products. This should be positive for Indonesia because investment is rising although the exports are not going to Korea but to other countries," she said referring as an example components imports for Samsung and LG electronic products. 

She said the country`s exports to South Korea in 2009 would be more of minerals, gas and coal. 

With regard to farm products she said "we cannot as yet be able to penetrate that country`s market because they impose a standard as high as that imposed by Japan for the products. Hopefully following the cooperation agreement situation will improve," she said.