Hard-hit by the global crisis, the INDONESIA value of EXPORT in 2012 could be down 20%

Weakening global economic conditions worsened in Europe and the United States (U.S.), making the Ministry of Commerce (Ministry of Trade) must prepare a worst case scenario that the exports of 2012 will go down.

Director General of Foreign Trade Ministry of Trade, Deddy Saleh, said that, if the debt crisis in Europe continues to drag on and the budget deficit in the U.S. is still a constraint weakening demand from Indonesia, the performance of the export value in 2012 could drop up to 20%.

Ministry of Trade predict the realization of the value of exports in 2011 could reach U.S. $ 200 billion. That means, the value of exports in the next year could be only about U.S. $ 160 billion. "But the optimistic predictions of our exports in 2012 will only drop 10% or at least stagnate it is good," said Deddy.

The manufacturing sector is predicted to be the sectors hardest hit by the global crisis in the next year. Meanwhile, exports of primary commodities such as crude palm oil (CPO) can still continue. Because Europe must inevitably take the CPO so that they must continue to import.

Impact of world economic slowdown on the Indonesia export performance is starting to look real. For instance, the total export value in October 2011 decreased 4.2% to U.S. $ 16.8 billion than the previous month. However,realization of export from January to October 2011 is still up 34.9% over the same period in 2010.

Meanwhile, Indonesia's exports to the EU in October 2011 rose 6.2% compared to September 2011. And Indonesia's exports for the same period to the United States is still growing 17.2%.

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INDONESIA’a woven fabrics and apparels subject to additional DUTIES

Woven fabrics and apparels products from Indonesia subject to additional custom tax by the Turkish authorities because they are flooding the Turkish’s domestic market. Though the two products were not manufactured locally Turkish industry.

"Indonesia is actually fills the market products not manufactured by the Turkish domestic industry," said Director of Trade Security International Cooperation Directorate Ministry of Trade Ernawati.

Woven fabrics products from Indonesia was subjected to an additional import duty of 18% with minimum requirement of U.S.$ 1 per kilogram (kg) and a maximum of U.S.$ 4 per kg. As for apparels products by 27% with minimum requirement of U.S.$ 4.5 per kg and a maximum of U.S.$ 18 per kg.

Imposition of additional duties assigned by the Department of Safeguards in the Turkish Ministry of Economics on September 15, 2011 following the announcement of the results of the safeguard investigation on these products. Safeguard investigation was conducted at the request of the petitioners who are representatives of various members of the Turkey Chamber of Commerce and Industry.

According to Ernawati, the Indonesian government has given in writing and direct rebuttal hearings held on the Turkish authorities on March 7, 2011. The charges are given at two products from Indonesia, she said, is not coupled with a strong foundation for the investigation of security measures (safeguards). Therefore, there is no evidence of serious loss or threat of loss experienced by the local industry.

In addition, she continued, Turkish authorities should limit the accusations against cotton products just because the results of industrial production in Turkey's domestic cotton. In fact, Indonesia exported woven fabrics of artificial staple fibers/synthetic filament.

Actually, during the investigation that took place since January 13, 2011 the government has coordinated with the exporters and producers from Indonesia represented by Indonesia Textile Association (API). In fact, when answering the questionnaire, Indonesia was cooperatively run it according to specified time Turkey.

According to data Trademap, the export value of woven fabrics from Indonesia to Turkey in 2008 is U.S.$ 197 million. That number increased slightly to U.S. $ 199 million in 2009. The export value also jumped to U.S.$ 292 million in 2010. For apparels product, export value in 2008 amounted to U.S.$ 12.6 million. That value had dropped in 2009 to U.S.$ 9.6 million, but rose again to U.S.$ 17.5 million in 2010.

Turkey, Ernawati said, was not the main countries of export destination both products. However, the country has a potential market with a market share of around 30% of Indonesia's total exports. Indonesia's largest export market share for products woven fabrics are Japan and China. While Indonesia's largest export destination for apparels products are the United States and the European Union.