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Kadin asks industry to reduce imported components
Economic dangers: Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulistio says the government needs to take immediate action to improve Indonesian exports and imports, which are declining
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span class="inline inline-center">Economic dangers: Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulistio says the government needs to take immediate action to improve Indonesian exports and imports, which are declining. (Antara/Fanny Octavianus)'
The Indonesian Chamber of Commerce and Industry (Kadin) has suggested manufacturers reduce imported components and increase local industrial contents in developing industries.
It also says there should be greater efforts to develop and empower industries, which have a high export capacity but have difficulty accessing capital. Kadin is calling on both the government and banking sector to give them more support by providing fiscal stimulus and interest subsidies.
Kadin has also called on all parties to reduce imports of consumer goods, especially luxurious goods, and basic and auxiliary goods. Instead, Kadin says, such imports should be replaced with domestic products by developing substitution industries.
'The current conditions of Indonesia's exports is alarming because in the first semester of 2015, the country's exports declined by up to 11.8 percent,' Kadin chairman Suryo Bambang Sulistio said as quoted by Antara in Jakarta on Thursday.
He said that during the global financial crisis in 2008-2009, Indonesia's exports dropped significantly due to weakened industrial activities and the country's heavy dependence on export-based raw materials, which suffered significant price declines in the global market.
Sulistio went on to say that Indonesia's trade surplus recorded in the first semester of 2015 was not due to export achievements but was triggered more by a significant decline in imports in the period, which stood at 15.1 percent.
At the same time, the country's exports declined by 11.67 percent.
Sulistio said export and import declines, which occurred all at once, were a sign of danger for Indonesia's external economic work performance. (edn/ebf)
