Indonesia's Export Expected to Grow by up to 14 pct This Year

Indonesian export is predicted to grow by 12 to 14 percent this year, Trade Minister Mari Elka Pangestu said Monday.

The growth was driven by the hike of export of comodities such as palm oil, rubber, paper and automotive, the minister told reporters after meeting Vice Presdient Jusuf Kalla at his office.

Pangestu said the country's palm oil export in the first half of this year rose by 130 percent, and exports of rubber, paper and automotive to the United States and Europe grew by 16 percent and 19 percent respectively in the first six months.

Indonesia has sought diversification of its export destination since its traditional market of the United States was affected by the economic crisis triggered by subprime mortgage problem.

Indonesia had to trim its economic target from 6.8 percent to 6.0 percent due to soaring global oil and commodities prices this year.

The reduction aimed at containing high pressure of inflation. Besiades, the country's central bank has risen interest rate by 25 basis points to 9 percent recently.

 

Source: CRIEnglish