Indonesia can't compete with China
JAKARTA - Indonesia has lost its competitiveness in 30 main export commodities compared to China in three major markets - the United States, Japan and Europe, analysts said.
Chatib Basri of the Economic Research Institute at the University of Indonesia, said China could undercut Indonesia in price by as much as 50 percent.
Basri said Indonesia is competitive in markets for some natural resource-based products like gas, oil and rubber. Altogether, however, most Indonesian commodities are less competitive compared to Chinese products in the three major markets, he said, citing Chinese-made shoes, which are 50 percent cheaper than Indonesian products.
Basri noted, however, that Indonesian exports to China grew by 17 percent year-on-year in the first 10 months of this year while exports to the United States grew by only 3 percent.
The increase in exports to China was recorded for primary products, electronics and components. Basri said China will grow to become a new production center in the world, and therefore, it needs a larger supply of primary commodities and components.
(Asia Pulse/Antara) atimes.com |
