"Our fuel oil imports are very high. Therefore development of petrochemical refineries is an urgent need. This is because we do not want our fuel oil imports to increase all the time," he said here on Tuesday.
He said the oil or organic basic chemical refining industry would be one of the sectors that would receive a tax holiday facility.
"That is why petrochemical and oil refineries will be one of the sectors to be given a tax holiday. We do not want imports to become bigger and bigger including imports of additives containing a large amount of fossil fuel-based lubricants," he said.
With regard to controlling the rate of exports and reliance on imports Hatta said the government would also improve domestic trade system, expand domestic market share, put domestic industries in order and maintain people`s buying power by controlling inflation.
"That is the key. Improving domestic trade is key to reducing burden. Do not let illegal levies to happen on inter-island trade that cause inefficiency and load," he said.
On depleting trade surplus due to an export decline and an increase in imports in July Hatta said that it was a common phenomena as totally the country`s export performance is still good.
He said however that Indonesia needs to watch the possibility of a slowdown in China`s economy as that country is one of Indonesia`s export destinations besides situation in the US and Europe.
"What we must think of is what we should do if economic slowdown happens in China because our exports to that country is very big. Although that is not something that we should worry about as our exports to China are mostly non-substituted. So we are still quite optimistic although attention has to be given to conditions in Europe and the US," he said.
Hatta hoped Indonesia`s exports in 2011 could reach the target of US$200 billion and surpassed that of 2010.
"We are optimistic we will surpass the 2010 mark. We hope we can achieve the US$200 billion mark. If I am not mistaken the US$170 billion mark will be surpassed," he said.
According to the National Statistics Agency Indonesia`s trade surplus in July 2011 only reached US$1.37 billion down from US$3 billion in June.
The agency chief, Rusman Heriawan, said exports in July were recorded at US$17.43 billion or down 5.23 percent from June but rising by 39.55 percent from the same period last year.
"Oil/gas exports in July reached US$3.8 billion and non-oil/gas exports US$13.62 billion," he said.
Indonesia`s total exports from January to July this year reached US$116.04 billion rising by 36.51 percent from the same period last year.
Indonesia`s biggest export market is China valued at US$10.92 billion, followed by Japan worth US$10.44 billion, the United States US$9.26 billion, ASEAN US$19.35 billion and European Union US$12/33 billion.
Rusman said the country`s imports in July were recorded at US$16.06 billion, up 27.22 percent compared to the same period last year and 6.57 percent from June.
"The value of non-oil/gas imports in July reached US$12.26 billion and oil/gas imports US$3.8 billion," he said.
Indonesia`s total imports from January to July 2011 reached US$99.64 billion rising by 31.87 percent from the same period last year.
(Uu.H-YH/HAJM/F001)
Editor: Priyambodo RH
Copyright © ANTARA 2011
