"Indonesia is also facing problem with falling exports to its crisis hit traditional markets."Surabaya, East Java (ANTARA News) - PT Asuransi Ekspor Indonesia (Persero) predicted the falling value of the Indonesian currency rupiah against the US dollar would boost the country`s exports.
"Exports should increase with the rupiah weakening. Exporters could get more rupiah from the dollar they earn from exports," Zaafril Razief Amir, the president of the state owned export insurance company, said.
Zaafril said many believe the current crisis besetting the European Union would last longer as so far there has been no signs of improvement.
There has been no effective remedy found for the European financial woes, he said, adding the current crisis is new for advanced economies.
The global crisis has also begun to bite in China and India as the two Asian giants are more export oriented .
Exports contribute 70 percent to China`s total income, Zaafril said, adding in Indonesia, exports contribute only 25 percent to the country`s GDP.
"Currently, however, Indonesia is also facing problem with falling exports to its crisis hit traditional markets," he said.
Before the global crisis struck exporters accept payments in `Letter of Credit` but not now, he said.
"In order to increase exports the government has to seek diversification of export markets with focus turned to new destinations such as Middle East, Africa, and South America," he said.
The initiative has been taken by Trade Minister Gita Wirjawan by recently visiting Brazil, Kenya and Nigeria, he said.
(Uu.AS/H-ASG/B/H-YH)
Editor: Priyambodo RH
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