Government pushes for SOEs to boost exports
The Jakarta Post
Jakarta, posted: Fri, September 7, 2018 | 03:40 pm
The State-Owned Enterprises Ministry will push for the export of products in the strategic industry to strengthen the rupiah amid strong dollar appreciation.
Among the companies committed to the initiative are state-owned weapons manufacturer PT Pindad, steel producer PT Krakatau Steel, train manufacturer PT Industri Kereta Api (Inka), foundry company PT Barata Indonesia and aircraft manufacturer PT Dirgantara Indonesia (PTDI).
"Our commitment to exports is vital for rupiah empowerment," said the ministry's mining, strategic industry and media undersecretary, Fajar Harry Sampurno.
Pindad is expected to export military hardware such as weaponry, munitions and tactical vehicles to Thailand, Brunei Darussalam, Myanmar, South Korea and France in support of United Nations missions this year.
For the ministry's initiative, the company set a target of Rp 78 billion (US$5.40 million) in exports.
Krakatau Steel has planned to export Rp 907 billion worth of hot-rolled coil steels to neighboring Malaysia and Australia this year. Barata Indonesia will export an estimated Rp 210 billion in train manufacturing components to the United States, Africa and Australia.
"PTDI is committed to exporting PHP 813 million ($15.06 million) worth of NC212i-type aircrafts to the Philippines, as well as $18 million worth of CN235-type aircrafts to Vietnam," Harry said.
Although the rupiah strengthened to below Rp 14,900 per US dollar on Thursday, Finance Sri Mulyani Indrawati said the government and the central bank would monitor the currency amid global uncertainty. (rfa/bbn)