SME exports decline by 6 percent

The Jakarta Post ,  Denpasar   |  Mon, 05/05/2008 11:26 AM  |  Bali

Bali's small and medium enterprises (SMEs) suffered a 6 percent decrease on their exports of garments, shoes and bags in the first two months of 2008, the Bali Trade and Industry Agency reported.

The total revenue generated by the overseas trade of SME products in that period was US$31.9 million, compared to last year when SMEs booked $34 million in exports revenue.

"Almost all of small and medium enterprise products that entered the export markets in January and February experienced a decline in terms of their contribution to the state's income," the report stated, as quoted by Antara.

The report said while further investigation was needed to determine the reasons behind the decrease, the ongoing economic recession in the United States, a primary market for SMEs in Bali, might play a crucial role behind the export slowdown.

One of the island's main exports -- garments -- experienced an 8 percent decrease in January and February. The revenue generated by the product was down to $23 million from $25 million booked in those months in 2007.

Indonesia faces tight competition against garments from China, India and Thailand, who can produce the same products for lower prices, the report said.

Bali's shoes exports also declined, with a revenue of $1.8 million in the first two months of this year, 18.7 percent less than the $2.3 million recorded in the same period last year.

Only 85,440 pieces of shoes were exported to overseas countries over two months, generating $193,000 in revenue -- significantly less than the same period last year where 306,790 pieces worth $397,807 were exported.

However, amid the worrying decrease, plastic-based souvenirs recorded an increase of 17.4 percent in January and February 2008, generating $2.2 million, a slight increase compared to $1.8 million in 2007.

SMEs exporting knock-down Balinese-style wooden houses also increased by 36 percent in January and February to $821,000. In 2007 the exports generated $603,000.

Exports of Bali's traditional houses have also started to attract the attention of the export market, with the agency recording $821,000 revenue from the product in the first two months of this year, up 36 percent from $603,000 last year.

Canned fish also increased in value by 66 percent, from $1.6 million in 2007 to $2.7 million in 2008.

Head of the Bali Trade and Industry Agency I Gusti Ngurah Sutedja was not available when contacted by The Jakarta Post on Saturday.

A  |   A  |   A  |    |   |    |    |    |  

Copyright © 2008 The Jakarta Post - PT Bina Media Tenggara. All Rights Reserved.