Bali sees sluggish exports

Bali is facing a downturn in exports of handicrafts due to financial crises and an influx of Chinese merchandise.

Many local exporters have had to postpone shipments to Bali’s major handicraft markets — the United States, Japan and some European countries, Bali trade and industry office official I Putu Bagiada said.

The office’s data showed that the island’s total export value dropped to only US$38.1 million in August 2010, down 17.88 percent from the $46.4 million recorded in July. The performance decline was attributed to a slide in demand for commodities such as handicrafts, textiles, canned products, fabricated houses, silver jewelry, furniture, bags and foot wear.

The island has also experienced a drastic decline in demand for agricultural commodities, such as cacao and coffee, which have been adversely affected by extreme weather conditions.

“They [exporters] have had to reschedule shipments because buyers have postponed their orders,” Bagiada said.

Exports of fishery products, however, slightly increased by 3.4 percent. Bali exports tuna, shrimp and other marine products to several countries, most notably Japan.

Many local businesses complained that their buyers had shifted their orders to companies in China because of price considerations.

Chinese companies are better equipped for mass production, while the majority of Balinese products are hand-made, Bagiada said.

Support from banks and financial institutions is badly needed to provide local businessmen with adequate capital to boost their competitiveness, he said.

“We hope everyone will support local businesses that produce quality goods, because we can only compete with Chinese products on a quality basis,” he added.