Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Indonesia sees container volumes down 20-30 pct in '09

Published 02/14/2009, 08:30 AM
Updated 02/14/2009, 08:32 AM
TTEF
-
TGT
-

(Adds details)

By Yayat Supriatna

JAKARTA, Feb 14 (Reuters) - Indonesia's trade minister said on Saturday export volumes for non-oil and gas are set to fall 20-30 percent this year from 2008 as global trade slows, dealing a blow to Southeast Asia's biggest economy in an election year.

Earlier this month, Trade Minister Mari Pangestu said Indonesia's non-oil and gas export growth target had been revised to below 4.3 percent for 2009. On Saturday she told reporters the outlook was worse.

"Based on container flow for January-February, exports volume this year may decline by between 20 to 30 percent. Non-oil and gas exports are expected to fall," Pangestu said.

She added 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 in January, from 13,000 units in December 2008, Pangestu said, representing a decline of about 27 percent.

Earlier this week, Pangestu said that growth in total exports would slow to just 1-2.5 percent this year, from about 20 percent in 2008. The government had previously forecast total exports would grow 5 percent in 2009.

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 4 and 5 percent, from an estimated 6.2 percent in 2008.

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 the April 9 general election and July 8 presidential election.

Indonesian exports include palm oil, tin, coal, copper, and rubber, and prices for many of these commodities have slumped.

Earlier this month, Indonesia reported that exports fell 20.6 percent to $8.69 billion in December from a year ago, the biggest drop in seven years.

Economists expect the central bank, Bank Indonesia, to continue its monetary easing cycle this year to try to boost economic growth.

Indonesia's central bank cut its key interest rate by 50 basis points to 8.25 percent in February, the third cut in three months, and indicated it may cut rates again to support growth. ($1=11,750 Rupiah) (Additional reporting by Karima Anjani; Writing by Sara Webb; editing by Elizabeth Piper)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.