Bali exports severely impacted by Japan disaster

Bali exporters are facing severe problems following the earthquake and tsunami in Japan and the resulting nuclear crisis, as the country’s economy has become very unpredictable.

Businesses in Bali export products such as fish and marine goods, handicrafts, textiles, garments, silver and ceramics to Japan.

Bali’s industry and trade office head I Gede Darmaja said Monday that many local businesses were still optimistic after Japan was struck by a devastating earthquake and tsunami in early March, hoping that economic conditions in the wealthy country would quickly rebound.

“We did not expect that the natural disasters would be followed by the catastrophic nuclear reactor leakages that could hamper the country’s economic activities for an uncertain period,” Darmaja said.

He predicted that Bali’s exports to Japan would drop at least 10 percent or more.

Data shows Bali’s exports to Japan last year amounted to US$95.61 million, an increase of 19 percent from the $80.16 million the previous year. Bali’s exports to Japan were 18 percent of the island’s total exports amounting to $519.91 million to 104 countries.

Japan has been Bali’s second largest overseas market after the United States.

An estimated 50 percent of exports from Bali are handicrafts, followed by tuna and fish products.

“Handicraft producers will be the hardest hit by the current sluggish economic conditions in Japan,” Darmaja said.

Many people in Japan may think twice before buying any handicrafts at this time as their first priority is food and basic items.

On the other hand, the disaster may have a silver lining for fish exporters, as Japan’s waters near the Fukushima nuclear reactor are reported to have been contaminated or exposed to high levels of nuclear radiation.

Japanese were told not to consume fish and marine products taken from those waters.

“We are expecting an increased need in Japan for fish and marine products from foreign countries, including Indonesia and Bali in particular,” Darmaja said.

Handicraft producers association chair Gde Weda Arjawa said association members were skeptical about their business future with Japanese buyers.

“We are still working on pre-earthquake and tsunami orders at the moment. We will likely face a gloomier picture in the next three or four months,” Arjawa said.

Darmaja has frequently called on local exporters to diversify their export markets to other destinations, including Eastern Europe, Latin America and the Middle East.

“We are now looking for business opportunities in a number of untapped countries, but we still want to maintain our once lucrative Japanese market.”