President Joko Widodo Open Trade Expo Indonesia in Tangerang - Photo by Trade Ministry
TANGERANG (TheInsiderStories) — Indonesia’s Current account deficit (CAD) is charged responsible for Rupiah exchange rate slump, President Joko Widodo said in Trade Expo Indonesia (TEI) opening in Tangerang province, on Wednesday (24/10). So far, Rupiah has reached more than 15,000 against US dollar.

He highlighted the years-swelling of current account deficit. In 2017, Indonesia has US$17.3 billion of CAD and in the third quarter of this year has reached $13.75 billion. Export value until third quarter also increased by 9.2 percent worth of $134.9 billion, which he claimed better than last year.

Trade Minister Enggartiasto Lukita is optimistic that Indonesian export growth throughout 2018 could reach 11 percent compared to 2017. He said, to boost export, Indonesian government targeted to finalized 13 bilateral trade negotiations next year.

“I am sure this year can be up to 11 percent, in the midst of an uncertain global atmosphere,” he said in a discussion of Fourth Years of Joko Widodo-Jusuf Kalla’s Government in Jakarta, on Tuesday (23/10).

Bank Indonesia believed by the end of this year the CAD could lowered to 2.5 percent of GDP with the series of policies that were designed by the government to put a brake on import growth and to encourage the country’s export.
Indonesia’s attempt to enter unusual market countries is appreciated by Widodo. He suggested exporters to widen its export to unsaturated market countries such as South Asia and Africa.
Besides, he also recognized the potency of ASEAN market as well. Widodo also wished Indonesia to use United States-China trade war as an opportunity, by entering the market left by the trading countries.
For increasing competitiveness, Indonesia must innovate its products and expand promotion by attending exhibition and advertise online. Especially, the technology grows in fast-paced and Indonesia must follow to not be left out.
An international TEI held in Tangerang from Oct. 24th to 28th. More than a thousand Indonesian companies participated in the exhibition. Around 68 trade agreements valued $5.19 billion will be signed during the exhibition, Lukita said.
The value consists of $513.97 million trade and $4.68 billion investment. South Korea, Australia, Saudi Arabia, Mexico, United States, and many other countries are expected to tie the trading knot with Indonesia in this event.
“It will be increasing during and after the exhibition,” the minister positively said.
Interested in products sold in the trade expo, so far there are 8,318 buyers from 124 countries registered. Biggest buyers are from Nigeria, Malaysia, China, Japan, and India also attended the event.
Written by Staff Editor, Email: theinsiderstories@gmail.com