Central Java entrepreneurs are optimistic that in Semester II/2021 manufacturing performance will improve. This was conveyed by Frans Kongi, Chairman of the DPD of the Indonesian Employers' Association (Apindo) in Central Java Province.
"The recovery is not what we expected, but we are getting there," explained Frans.
Frans also revealed that the economic recovery in several countries had an impact on the increase in export demand. "Our current exports of textiles and garments, for example Muslim clothing, are being excellent abroad. Industry began to receive orders from Turkey, Africa, Arabia. Demand is starting to improve,” he added.
Based on records from the Central Java Province Central Statistics Agency (BPS), the export value in July 2021 was reported to reach US$ 816.09 million. On an annual basis the figure grew by 14.21 percent, but experienced a monthly contraction of 2.73 percent.
Frans revealed that there are a number of factors that affect the performance of foreign trade. The scarcity of container availability makes it difficult for entrepreneurs to send their products abroad. In addition, the increase in international shipping costs is also increasingly burdensome for entrepreneurs.
"We have asked the government to pay close attention to this, because for more than a year this service airline has had very little demand, they have suffered losses, so they chose to increase prices," explained Frans.
According to Frans, various problems faced by entrepreneurs will have a significant impact on efforts to recover the economy.
Meanwhile, Head of Central Java BPS Sentot Bangun Widoyono previously stated that Central Java's trade balance in July had a surplus of up to US$74.35 million. The non-oil and gas sector reported a surplus of US$236.11 million, while the oil and gas sector had a deficit of US$161.76 million.
"The three largest non-oil and gas export destinations in July 2021 include the United States with a value of US$330.09 million, followed by Japan with US$68.53 million, and China with US$56.10 million, with the contribution of the three of them amounting to 55.54 percent during January- July 2021," said Sentot.