Indonesia`s economic fundamentals still in good condition: Chamber

Indonesia`s economic fundamentals still in good condition: Chamber

Deputy Chairman of the Maritime and Fisheries Chamber of Commerce and Industry (Kadin) Yugi Prayanto (left) and Chairperson of the Maritime and Fishery Advisory Board of Kadin Rokhmin Dahuri. (Special)

Jakarta (ANTARA News) - The influential Indonesian Chamber of Commerce and Industry (Kadin) said the country`s economic fundamentals are still in good condition, but the government needs to boost exports to cope with a number of problems such as current account deficit.

"The economic condition is still under control," Deputy Chairman of Kadin for Marine Affairs and Fisheries Yugi Prayanto said here on Thursday.

Yugi pointed to steady economic growth and stable inflation at low level.

However, there are risks of the economic dynamics that need serious government addressing, he said.

"Indonesia also needs to keep its foreign exchange reserve by increasing exports," he added.

Earlier, Industry Minister Airlangga Hartarto said economic partnership with various other countries under trade agreements would open greater opportunity to boost exports.

Airlangga said earlier this week, the ministry would seek to boost exports as Indonesia still has a surplus in capacity.

He cited a number of potential export oriented industries such as food and beverage industry and textile and textile product (TPT) industry.

The government has been recommended to push for improving the performance of non-mining sectors to increase their contribution to exports. So far the country has depended too much on natural resources or primary commodities which have little added value for export earning.

"The government needs to boost development of non-extractive industries, which could compete in international market," researcher from CIPS Assyifa Szami Ilman said in a statement on Thursday.

Ilman said expansion of non-extractive industries is expected to contribute to diversifying export commodities.

The country, therefore, would not be dependent on primary commodities, the prices of which tend to be more volatile, he added.

Reporting by Muhammad Razi Rahman
Editing by Suharto

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