Indonesia exports forecast to drop by 20% in 2009

JAKARTA, Nov. 3 (Xinhua) -- Indonesian Trade Minister Mari ElkaPangestu said on Tuesday that the country's exports were predicted to decrease by 20 percent and non-oil-and gas exports by15 percent this year, better than earlier prediction at the beginning of the year of about 30 percent.

The minister said that the overseas sales would start to rise at 5 percent at the beginning of next year, as the global economy recovery continued.

"At the beginning we predict exports would drop to 30 percent, (but now) we expect the decrease would be minus about 20 percent at the end of this year and 15 percent for non-oil and gas," the minister told reporters after the Stakeholder Gathering at her office here.

Indonesia is the world's top palm oil and rubber exporter.

The country's export's accounted of 32 percent of its GDP.

Despite the cumulative of exports still lower than that at the previous year, the trend of the overseas sales has indicated an improvement, according to the minister, as the country's economy has started to recover along with the global economy.

"There have been signals of economic recovery at the middle of this year. This shows that the global crisis recovers faster than it was predicted," said Pangestu.

Indonesia has struggled to boost it non-oil-and gas exports by easing rules on exports and carrying out exhibition or promotion of its products to international buyers, which has been well responded.