Indonesia reduces export to curb recession impact (Photo: Reuters) Jakarta (VNA) - Indonesian Cooperative and SME Minister Teten Masduki said that his government will revise next year's export target in a bit to anticipate the impact of the global recession.
According to Telen, Indonesia has started to feel the impact of the recession, with export demand for manufacturing goods declining.
Speaking at a recent press conference, he said that currently, the manufacturing industry is down and causing job cuts because world demand is declining. Therefore, next year the government will focus on the domestic market.
Teten noted that the government will divert exports to the domestic market. To ensure a successful market transfer, it will limit the entry of imports. That way, Indonesian products, including those made by MSMEs, can thrive in the domestic market.
The minister revealed that import restrictions had been discussed through a coordination meeting with the Coordinating Minister for Economic Affairs Airlangga Hartarto. The plan was also discussed at a cabinet meeting with President Joko Widodo.
He also highlighted if the country can turn off the import tap and give the market to MSME products, it will serve as a momentum for MSMEs to take advantage of the global crisis and use that to build a better business fundamental.
Nevertheless, Teten acknowledged that there are a number of commodities that need to be exported because global market demand is still high and they have great potential. Therefore, his ministry will be curating selectively and providing assistance, from export licensing to financing.
In a related move, Indonesia is set to export less palm oil as it tightens a policy requiring companies to keep more supply at home.
According to Budi Santoso, director general of foreign trade at the trade ministry, starting from January 1, the government is cutting the amount producers can export to six times the domestic sales requirement, down from eight times currently./.
