Govt Relies on Automotive, Mining Trade to Narrow Deficit
3 July 2014 14:08 WIB
TEMPO.CO, Jakarta - Trade Minister Muhammad Lutfi said that mining and automotive sectors are Indonesia's main hope to repair the trade balance position until the end of this year.
The two sectors are expected to boost non-oil and gas trade, which is expected to reach US$190 billion. "Hopefully by the end of this year there is a surplus," Lutfi said at his office yesterday.
In the mining sector, there is potential for exports increase in the second half once there are delivery contracts for copper and concentrates. In the near future, said Lutfi, the negotiation process for copper and gold export licenses will be completed. According to his calculations, the value of gold and copper concentrates in major mines is close to US$ 1 billion.
From the automotive sector, the government higher exports of cheap green cars to a number of Asian countries, following the increased production capacity of some manufacturers such as Toyota, Daihatsu and Honda. This year, the total value of vehicle export is expected to reach US$4.5 billion. The government targets to double the value by 2017 to US$9 billion.
AYU PRIMA SANDI | AYU WANDARI | KHAIRUL ANAM