New export markets too small
Linda Yulisman, The Jakarta Post, Jakarta | Headlines | Wed, December 05 2012, 9:52 AM
Despite significant growth, exports to new markets are still unable to offset demand for Indonesia’s goods and commodities from the country’s existing major trading partners.
From January to October this year, non-oil and gas exports to 10 non-traditional and emerging markets, such as South Africa and Colombia, expanded by 115 percent on average to US$3.7 billion, according to statistics from the Trade Ministry. This compared to a 6.2 percent in exports growth, to $86.6 billion, to 10 key export markets.
Indonesia saw its largest export growth of 337.62 percent to $58.58 million to Libya during the period, followed by a 264.50 percent growth to $57.76 million to Mauritania, and a 200.16 percent growth to $82.12 million to Ivory Coast.
Exports mainly comprised coal, books and printed materials, pharmaceutical products, paper, rubber, palm oil, soap, automobiles and parts, and processed meat and fish.
Ahmad Erani Yustika, an economist at the Indonesian Institute for the Development of Economics and Finance (INDEF), said on Tuesday that although exports to several new markets had increased by more than 100 percent, the result was not significant enough to counter weakening sales to traditional markets because in terms of volume as well as value, they were still very small.
“The government’s claims of a successful export diversification push are too early. Expansion to non-traditional markets goes beyond changing destinations and it takes a lot of time, as exporters should fit their products with the needs of consumers in new markets,” he told The Jakarta Post.
“We must be consistent in executing our measures to push up exports to new markets and for this goal, we need a road map,” he added.
Deputy Trade Minister Bayu Krisnamurthi earlier said that the government had already considered designing a road map for export diversification, but it was not clear whether the plan has progressed.
In previous years, the government has tried to shift its focus from major trade partners, such as Japan and the US, to new markets, particularly in the Middle East, South America and Africa. Those efforts increased last year as exports to traditional markets slumped.
Indonesian Institute of Sciences (LIPI) economist Latif Adam echoed Erani’s argument, saying that one of the main indicators of successful diversification would be a noticeable absorption of exports in new markets that had previously sold well in existing markets.
“The $3.76 billion figure is not comparable to $86.6 billion. Real success will happen only if non-traditional markets can replace the role of traditional markets in terms of volume or value,” he said.
The government should be more proactive in disseminating information about export-related regulations, non-tariff barriers and consumer interests in new markets, he added.
Exports plunged by 7.61 percent to $15.67 billion in October from a year earlier, worse than market expectations of only 4 percent, particularly due to a drop in palm oil prices, while imports grew steadily by 10.82 percent to $17.21 billion from the past year, resulting in a record monthly deficit of $1.55 billion.
Cumulatively from January to October, exports dropped by 6.22 percent to $158.66 billion from the past year, while imports surged by 9.35 percent to $159.18 billion, generating a deficit of $516.1 million.
RI to expand ICT-based education
by Wasti Atmodjo on 2012-12-05
Underprivileged: School children play with their friends in this rural, isolated village in east Bali. Seeing their school equipped with information and communication technology is a vague dream for these children, who are still struggling to get decent uniforms and shoes. BD/Anggara MahendraUnderprivileged: School children play with their friends in this rural, isolated village in east Bali. Seeing their school equipped with information and communication technology is a vague dream for these children, who are still struggling to get decent uniforms and shoes.
BD/Anggara Mahendra Indonesia has pledged to strengthen its education networks by utilizing information and communication technology (ICT) in 100,000 schools across the country by 2014.
Taufik Hanafi, a professor of education and expert on social and economic issues at the Education and Culture Ministry, said when opening the International Symposium on Open, Distance and E-Learning (ISODEL) 2012 in Kuta on Tuesday that Indonesia would benefit from using ICT-based education in its school curriculums, especially when reaching schools in remote regions.
“Indonesia is an archipelagic country with 13,000 islands, but we are optimistic that we can provide the best education to all school-age students despite any geographical obstacles,” the professor said.
This year’s ISODEL meeting, taking place from Dec. 4 through Dec. 6, will bear the theme “Enhancing Lifelong Learning for All: Achieving Global Welfare.”
The three-day gathering, bringing together no less than 500 education experts from around the world, will be aiming at sharing knowledge, experiences and thoughts in the field of open, distance and e-learning worldwide.
It is also a forum in which all participating countries will learn and disseminate best practices, breakthroughs and innovations in the field of open, distance and e-learning methods.
Taufik went further that Indonesia currently had 54.8 million school students, 44 million of whom were elementary and junior high school students. “Indonesia ranks third in Asia and fourth in the world in terms of the number of school-age students,” Taufik said.
According to a report released by UNESCO in 2012, Indonesia is categorized as middle-income country based on its gross domestic product (GDP).
The report also says that Indonesia’s school-life expectancy (the length of time children should be in education) is between 13-16 years.
There are several countries with higher GDPs, such as Saudi Arabia, Argentina, Greece, Poland and Mexico, which have similar levels of school-life expectancy. Some countries, including Turkey and Oman, which have high GDPs, have a lower level of school-life expectancy compared to Indonesia’s.
“Reaching out to faraway places will be our main focus. We will expand the use of information and communication technology when disseminating lessons in every subject,” Taufik added.
To implement the ICT-expansion program, the central government has gradually increased the education budget from Rp 2.98 trillion (US$309.6 million) in 2012 to Rp 3.36 trillion in 2013.
Around Rp 162 billion will be allocated to develop the national education network (Jardiknas) as part of the National School Net program.
Ari Santoso, head of the ministry’s center for information, communication and technology, said that currently the ministry had developed Internet connections in 23,000 out of 254,000 elementary schools under the ministry, including those in Bali.
In 2013, the ministry will again develop its Internet connections in 40,000 to 100,000 schools.
“Training for teachers to apply ICT-based education methods will be our main priority,” Santoso said.
The ministry has plans to develop solar or wind energy systems to provide electricity for schools located in remote areas.
“Instead of providing desktop computers, we prefer to give them laptop computers to save energy,” Ari added.
Distinguished speakers from the World Bank, China, Russia and other countries will present their papers today (Wednesday) at the symposium.
This is the one I wanted to see succeed the most 
If you can't stop it, control it by slapping tax on them. Then sit back and watch as the economy soar
