Worsening debt crisis, INDONESIA's EXPORTS to Europe will stagnate

Ministry of Industry worrying the European Union financial problems will affect the Indonesia export to Europe. Because, Greece's debt problems spread to other countries in Europe which has the potential to expand the region's financial crisis.

"For me Europe is not too optimistic. Especially if you look at the debt structure of large countries," said Director General of International Cooperation Ministry of Industry Industry, Agus Tjahayana.

According to him, Greece's debt problems will be difficult to prolonged unresolved because the three countries, namely Germany, France, and Britain is expected to help bail out Greece's debt was in trouble. In fact, Germany was difficult to expand its export market as China slammed aggression. "The possibility of its condition deteriorated," he said.

In fact, Indonesia's exports to the EU during the period 2007-2010 recorded an average increase of 9%. That number exceeds the import of industrial products from Europe which reached 8%. In 2010 Indonesia's trade balance with the EU surplus of U.S. $ 4.5 billion.

The amount was donated processed coconut or palm oil with a market share of 20%, textiles and textile products 14.5%, electronics 10.5%, 10.5% of processed rubber, and footwear or shoes 8%.

In fact, certain products have increased sharply as exports of other chemical products rose 147%, 59.4% of other commodities, cigarettes rose by 28.7%, and sports equipment 26.5%.

Unfortunately, the market penetration of industrial products to the EU is still relatively low with an average of about 0.5%. It is actually according to Agus could be an opportunity to expand market share of Indonesian exports. However, the region's financial condition would likely delay the planned expansion of Indonesia's exports.

"It is possible that down then the condition will remain stagnant because Europe needs these commodities," he said.

As with the financial problems the United States. According to Agus, the condition of the country was not too worried because the position of United States economic growth which is growing despite the crisis.

Country's internal political problems that make the financial problems the United States as unresolved. However, he believes, the country will find the solution of the problem.

As a result, most likely the United States - Indonesia trade will be stagnant for some time. Even if rising then the condition is a result of the appreciation of the yuan currency, the rupiah (IDR), Singapore dollar, ringgit, baht and peso. "The effect would be all for all countries for the same commodity," he said.

Indonesia Trade Minister Marie Elka Pangestu also ever mentioned her concern at the condition of the European Union's financial problems. "Compared to the United States, we are more worried about conditions in Europe," she said.

To maintain the level of Indonesia exports due to the decline in market share in both areas, Marie expressed, should be done by enhancing competitiveness, increasing diversification of export markets, and minimize the high cost.

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Wings Air and Lion Air operate 5 new routes

The airline company Lion Air and Wings Air will operating five new routes to Bali, Nusa Tenggara, and Kalimantan began earlier this month.

According to General Director of Lion Air, Edward Sirait, Wings Air is to operate four new routes, Semarang - Denpasar, Denpasar - Mataram, Denpasar - Tambolaka, and Denpasar-Bima. While the Lion Air, will add one new route, Surabaya - Palangkaraya. Wings Air will use the new aircraft ATR72-500 (propeller) with a capacity of about 72 seats for this five new routes. Meanwhile, Lion Air flights to Palangkaraya for time being served with Boeing 737-400 jets.

"The route Semarang – Denpasar and Denpasar - Mataram served by Wings Air started operating since September 6, 2010. The route was flown twice in one day," Edward Sirait said. The route Denpasar - Tambolaka served four times a week, on Monday, Wednesday, Friday and Sunday. While the Wings Air route from Denpasar to Bima served three times a week, on Tuesday, Thursday and Saturday. Lion Air's new route from Surabaya to Palangkaraya done once a day, starting Tuesday (Sept 7, 2010). Semarang - Denpasar flight was operated by the transit in Surabaya before, will be increased flight frequency of once daily.

"Lion Air and Wings Air in synergy continues to develop services for the domestic flight and international operations. But for now the market development will concentrate on domestic flights to meet the domestic air transportation market which is still quite large in the entire archipelago," said Edward.

In addition to increasing revenue and expanding markets, development of flight operations into the eastern region of Indonesia such as Bali, Sulawesi Tenggara, and Kalimantan, he said, was intended as an effort to encourage economic growth in the region. In addition, with the opening of new routes, it is expected the tourism sector in these areas will continue to rise.

Edward predicted, the load factor or the level of passenger plane filled five new routes will reach 90% with passengers from all segments of the target. Development of flight operating new routes are also planned with the addition of the frequency of flights to increase the capacity of the aircraft. That, he said, made possible because of the increasing new fleet of jet and propeller both owned airlines.

Export value of Indonesia Ornamental Fish tends to increase

Export value of ornamental fish from Indonesia tends to increase every year, and during the year 2009 reached 10 million U.S. dollars.

"In 2007 totaled USD 7.3 million, and on the year 2008 is increasing to USD 8.3 million," said Head of Data Center for Statistics and Information Ministry of Marine Affairs and Fisheries Soen'an H. Purnomo. But according to him, the export value is still not significantly compared to the large potential of ornamental fish resources of Indonesia which reaches 1.5 billion fishes.

Indonesia is now only controlled 7.5 percent of new ornamental fish trade in the world, or far behind compared to Singapore which reached 22.8 percent. "Though the country has no resources of ornamental fish," said Soen'an. Receiving countries that receive of freshwater and marine species which export from Indonesia are Singapore, China, Hong Kong, Malaysia, Japan, South Korea, America and the European Union. "Therefore, to bolster the performance of marine and fisheries sector, the one commodity that is important is the ornamental fish, hence its development needs to be done well," he said.

To develop of ornamental fish industry can be done through three efforts : first, the development of marketing and development center of ornamental fish, or better known as Ornamental Fish Research. The second effort, which is organizing exhibitions and sales of ornamental fish market. Third is facilitating the ornamental fish market promotion in foreign and domestic.

"In an effort to realize the vision of the Ministry of Marine Affairs and Fisheries to be a biggest producer of marine and fishery products in the world in 2015, we had set a four-step strategy (grand strategy policy)," he said. These strategic steps are to strengthen institutional and human resources in an integrated manner, to manage marine resources and sustainable fisheries, enhance productivity and competitiveness of the knowledge base and expand domestic and international market access.

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Garuda Indonesia earn US$ 300 Million from IPO

The airline company - PT Garuda Indonesia – have a target to earn a ‘fresh funds’ US$ 200 million - US$ 300 million from the implementation of the initial public offering (IPO) in Indonesia Stock Exchange (BEI). Garuda Indonesia will appoint their underwriters on the IPO on this recent weeks.

Emirsyah Satar, president director of Garuda Indonesia, said the IPO funds will be used to increase the number of aircraft and expand the network coverage of Garuda Indonesia. "We will soon appoint the underwriters," said Emirsyah in a special interview with Bloomberg in Singapore, Monday (1/2/2010). Garuda Indonesia will become the second airline in Asia to sell its shares in the IPO for their business expansion in line with economic recovery in Asia from a global recession.

Survey of International Air Transport Association (IATA) said that on 2009, Asia took over the position of North America as the largest market for the world aviation industry. "There is optimism in the airline industry and therefore the interests of investors (for entry into the aviation industry) began to return," said Binit Somaia, Southeast Asia Center Director fos Asia Pacific Aviation, an aviation consulting agency based in Sydney. Somaia said, there is currently no sign of the airline industry would booming, but he was convinced the worst was over.

According to Giovanni Bisignani, IATA chief executive officer, the number of passengers using the aircraft in the Asia Pacific region in 2009 reached 647 million passengers, more than the number of passengers in North America reached 638 million. He added that there are approximately 217 million additional passengers who will fly in 2013.

The growth of the airline industry so rapidly which attract investment from the world's billionaires. Example, Wilbur Ross, who founded the budget airline in India and Richard Branson who opened a similar flight in Malaysia. Tiger Airways Holdings Ltd.., a budget airline owned by Singapore Airlines Ltd., last month offered its shares to the public through an IPO to fund their expansion.

This year, Garuda Indonesia would receive delivery of 23 Boeing 737 aircraft from Boeing Co.. Emirsyah also said, in the year 2014 Garuda will buy 90 Boeing 737 aircraft. This company had received an approval from the holders of bonds last month to restructure debt and pave the steps toward an IPO gate. In fact, Garuda plans IPO has been initiated since 1998. Garuda Indonesia target can double the number of its fleet to 103 aircraft in 2013, acquiring the local airline, and fly to several new destinations in Japan, South Korea, and Europe.

Indonesia’s Export Target Increase 10 Percent to Egypt

Indonesia is targetting to increase the export value of 10% to Egypt this year. That's because the Indonesia and Egypt has agreed to increase bilateral trade and investment between the two countries on five industrial sectors, namely construction, textiles and textile products, automotive, fertilizer, and food processing. This presented by the Indonesia Minister of Trade Mari Elka Pangestu, after she received a visit from Egypt Minister of Trade and Industry Rachid Mohamed Rachid Egypt in Jakarta, Wednesday (13 / 1).

The meeting will also bring together 15 business delegates from Egypt for the construction industry, automotive, fertilizer, pharmaceuticals, furniture, food processing, and banking services. Increasing the export is one step of Indonesia to reach the Egyptian market. Moreover, Egypt will be entering a custom union between the United States with Saudi Arabia.

Projected increase in exports especially to increase on construction products and services.This is because Egypt is currently intensively accelerate construction projects in three major cities, one of which was in southern Cairo. Construction services will continue to be a primadonna because materials and furniture from Indonesia has good quality.

In addition, Mari Pangestu said, so far Egypt has been a strategic trade partner for Indonesia. Total trade in Indonesia and Egypt during the 2004-2008 period increased to 45.2%. In 2008, total trade between the two countries reached U.S. $ 1 billion. Indonesia's export value of U.S. $ 790.7 million and Indonesia’s import U.S. $ 210 million. For the period January-October 2009, total trade between the two countries amounted to U.S. $ 632.5 million. Details, the value of Indonesian exports recorded U.S. $ 555.1 million and imports worth U.S. $ 77.4 million.

Mari says, to boost the exports, the government will contribute to involve banks. Special banking especially for export sector in Egypt it will be holding Indonesian Export Financing Institutions to increase cooperation in the export transaction services. "So far, banks still become the largest export constraints. Until now, no specific banks that facilitate transactions Indonesian exports to Egypt," she said.

Rachid claimed optimistic prospects for increased trade between the two countries can be realized. Egypt also has agreed to increase investment and trade for the dominant sectors. So far, the main Egyptian exports to Indonesia are manufactured fertilizer, raw fertilizer, cotton, heavy machinery, and leather tonhed. Chairman of the Standing Committee of the Middle East and OKI Chamber of Indonesia Commerce and Industry, Fachry Thaib said through commitment of this bilateral trade cooperation, the Chamber of Commerce estimates that increased trade between the two countries will reach U.S. $ 2 billion in the next two years. The increase was due to Egypt have expressed interest in investing in Indonesia for the development and construction phosphate factory.

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Indonesia Exports Grow 5.1 Percent in 2010

The Indonesia government claimed optimistic exports in 2010 shown a positive growth. The reason is, the five Indonesia largest export markets are getting economic improvement.

Five countries are projected to experience positive economic growth in 2010 include the European Union, the United States, China, Japan, and India. In addition, the government also seeks to open new markets like the Middle East, Europe, and Russia.

"After experiencing a negative contraction in the year 2009, we expect exports will go to a positive growth in 2010," said Minister of Trade Mari Elka Pangestu in Jakarta. In addition to efforts to open new markets, commodity prices are expected to be stable in the year 2010 is also expected to push export revenues this year.

Indonesia's export growth has contracted to negative 15 percent. However, in line with world economic recovery, the Indonesian government dared to target export growth in 2010 at 5.1 percent level.

"The projection of economic growth and world trade in the positive range. So, we hope that Indonesia is also experienced," Mari Pangestu added.