JAKARTA (TheInsiderStories) – Indonesian government targets to increase the non-oil exports values by 7.47 percent or worth of US$175.9 billion in 2019, said one senior official on Thursday (01/10). Until November, the realization of non-oil and gas exports at $163.6 billion.
The targets influenced by several factors such as global economic conditions that are still completely uncertain as a result by trade war between United States (US) and China. To reach the target, he added, the government would focus more on the penetration of export markets to non-traditional countries.
In 2018, the ministry succeeded in encouraging export in non-traditional export values such as Bangladesh (15.9 percent), Turkey (10.4 percent), Myanmar (17.3 percent), Canada (9.0 percent) and New Zealand (16, 8 percent).
“The non-traditional market supports this shortfall and we will increase the market even more with the current and future trade agreements,” said Minister of Trade Enggartiasto Lukita on Thursday (01/10) at his office in Jakarta.
Throughout this year, the ministry targets the completion of 12 trade agreements. Three of them are intended for countries in the African continent which have become the new target market since 2018, namely Mozambique, Tunisia and Morocco. Indonesia will establish trade cooperation with the three countries through the Preferential Trade Agreement (PTA) scheme.
Besides Africa, the government will enter into a cooperation agreement with Iran, which is also in the PTA scheme. For Turkey, Indonesia will collaborate through a Comprehensive Economic Partnership Agreement (CEPA).
Another country that is also the target of the agreement is South Korea. The target is that the agreement in the form of CEPA will be completed within one year.
Acknowledged, that the 12 trade agreements would not have a significant impact on the performance of exports and economic growth in 2019. Because, a process of approval and ratification is need not to resolve the agreement.
Written by Daniel Deha, Email: email@example.com