Trade to EU not affected by volcano, players say
Mustaqim Adamrah, The Jakarta Post, Jakarta | Thu, 04/22/2010 10:27 AM |
Indonesia’s export activities have suffered little impact, if any, from the clouds of volcanic ash that have affected parts of Europe and disrupted flights since last week.
Indonesian Exporters Association (GPEI) secretary-general Toto Dirgantoro said Wednesday he had not received complaints or reports of losses from GPEI members because of disruption to EU trade caused by volcanic ash from Iceland .
“To date, the volcanic ash has no impact on our export activities to Europe , not that I’m aware of, because most of our exports are shipped, not flown,” he told The Jakarta Post.
But he said he did not know of the different volumes of RI exports to the EU using ships and planes.
“The most possible losses incurred would probably be increased costs resulting from goods that are ready to be delivered [to Europe ] but are suspended in domestic airports’ warehouses because of the situation,” Toto said.
“But I don’t get any reports about that either.”
In addition to warehouse costs, exporters might also feel the pinch as their goods stay on hold at domestic airports while there are at the same time letters of credit [export payment documentation] that may have expired, he said.
“In such a force majeure case, shippers and buyers will definitely amend the LCs [letters of credit],” said Toto.
According to Toto, goods that use air services for export deliveries include garments, blankets and fresh sea products.
Indonesian Fishery Processing and Marketing Entrepreneurs Association (AP5I) chairman Thomas Darmawan said he had received no reports about disrupted activities of exported sea products.
“Most of our exported sea products are frozen. So, there’s no need for us to deliver them by air,” he told the Post.
He said Thailand and Vietnam were probably the ones whose exports of fresh sea products to Europe were disrupted.
According to Thomas, Indonesia exported US$146.6 million of shrimps, $34.29 million of tuna, $21.24 million of sea weed and $100.54 million of processed fish (excluding tuna and shrimp), to Europe in 2009.
Indonesia’s total exports of sea products to the EU accounted for 12.8 percent of the total or $2.69 billion in 2008 and 11.9 percent of the total or $2.47 billion in 2009, he said.
Central Statistics Agency (BPS) data shows non-oil and gas exports to the EU stood at $2.59 billion in the first two months this year, up by 37.8 percent from the $1.88 billion booked in the same period last year.
BPS head Rusman Heriawan said Indonesian goods exported to the EU were mostly resource-based products, such as coffee, tea and crude palm oil, all of which were transported by sea.
“We have no problems with our export activities [to Europe ] because most of our exports are shipped and there are no reports of sea traffic disruptions, while volcanic ash is a short-term [phenomenon],” he told the Post.
Likewise, a trade expert with the University of Indonesia , Arindra Artasya Zainal, said the impact of volcanic ash on Indonesia ’s exports to Europe would be relatively small.
“But the absolute number may be big,” he told the Post.
