Indonesia moves to cut EFTA trade deficit

Novia D.Rulistia , The Jakarta Post , Jakarta | Wed, 03/05/2008 2:15 AM | Business

Indonesia expects to increase exports to European Free Trade Association (EFTA) countries this year by 12 percent, although the country will still suffer a deficit, continuing a four-year trend, an official said Tuesday.

Bachrul Chairi, head of the National Agency for Export Development (BPEN) at the Trade Ministry, told a seminar the ministry was upbeat this year's exports would increase 12 percent from $274 million in 2007.

"We're targeting to book a 12 percent increase in this year's exports to the EFTA as the trend for our exports to the region is increasing," he said.

In 2005, the value of Indonesia's exports to the region reached $256 million, up from $235 million in 2004. In 2006, exports were valued at $245 million.

EFTA groups Switzerland, Norway, Iceland and Liechtenstein.

Indonesia suffered a $181 million trade deficit last year with the EFTA, from $96 million a year earlier. In 2005, the deficit stood at $58 million and in 2004 $40 million.

"Among the four countries, Switzerland took the biggest portion of Indonesia's exports last year, totaling $225 million, followed by Norway $48 million, Iceland $1.3 million and Liechtenstein $60,000," Bachrul said.

Switzerland and Norway are included among the 50 major countries for Indonesian exports.

"This seminar is taking place as a follow-up to the ministerial meeting held in Davos, Switzerland, in January 2007 which aimed to encourage, facilitate and intensify the cooperation between the Indonesia and EFTA," Bachrul said.

Indonesia's key exports to the region are electrical machinery, apparel and footwear, while its imports are mainly machinery and pharmaceutical products.

Exports from the agriculture and fisheries sectors stood at $3.93 billion in 2007, a 3.45 percent increase from the previous year.

In fishery, Norway stands in 32nd position and Switzerland 47th for Indonesia's main export destinations, with major products including shrimp, fish and mollusks.

Indonesia's main export destinations for fishery products are Japan, the United States, Hong Kong and Thailand.

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