Indonesian Trade Ministry Targets Three Priority Programs in 2020

Indonesian trade ministry targets the completion of three priority programs to be realized in 2020 - Photo by theinsiderstories.com

JAKARTA (TheInsiderStories) –  Indonesian trade ministry targets the completion of three priority programs to be realized in 2020. It includes increasing non-oil exports to maintain the trade balance, strengthening the domestic market with inflation set at around 3 percent, and simplifying 18 regulations related to export-import.

This was stated by trade minister Agus Suparmanto along with his ministry’s directors in a media briefing on Friday (11/08). In the midst of a global economic slowdown, Suparmanto said Indonesia had set a realistic export target with goods and services growing 4.5 – 8.63 percent. While non-oil exports are expected to grow around 6.88 – 12.23 percent, from the current US$175 billion to $190 billion next year.

“In order to increase the value of non-oil exports, the government will focus on developing six potential sectors including wood products, food and beverages, textiles and clothing, automotive, electronics and basic chemicals,” said Arlinda, director general of national export development.

To achieve this, the government will complete a number of international trade negotiations with 11 countries to be completed during 2020. Of the 11 countries, five are priorities including the Comprehensive Economic Partnership Agreement (CEPA) of Indonesia – European Union (EU) and Turkey. Also the Prefential Trade Agreement (PTA) of Indonesia-Marocco, Tunisia and Bangladesh.

“We will review the draft Indonesia-EU CEPA to ensure that palm oil is not overlooked during the cooperation negotiations,” said deputy of trade minister Jerry Sambuaga, stressing Indonesia’s determination to continue the lawsuit to the World Trade Organization over plans to limit the use of biodiesel by countries the Eurozone.

Indonesia – EU CEPA is projected to drive the growth of the country’s gross domestic product up to 0.5 percent a year and increase the value of exports up to $1.1 billion or grow 5.4 a year, he added.

Furthermore, to secure and strengthen the domestic market, the government will control imports selectively, especially for raw materials. The government, in this case, is targeting food inflation of around 3 percent. Although in general inflation is still low – October 2019 by 3.13 percent, the rise in inflation of volatile goods is 4.90 percent, especially food items by 4.85 percent, statistics agency data showed recently.

“We will also maintain the stability of prices of staple goods to maintain inflation ahead of Christmas and the New Year season,” he said, adding the startup would also be encouraged by an applicative and orderly mechanism.

Then, simplification of the ministry’s bureaucracy and human resource development. Suparmanto explained that there were at least 18 ministerial regulations related to exports and imports that had to be simplified, as well as to follow up the formation of the omnibus law launched by President Joko Widodo.

“We will also restructure functional positions with pilot projects in 7 echelons two units and 7 service units out of a total of 54 work units,” Suparmanto explained, adding his ministry suggested certain functional positions should be in place including negotiators, analysis, and examiners of commodity futures trading.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com