BANJARMASIN: South Kalimantans coal exports declined again by 9.8 percent to 126,800 tons in 2015 from 140,500 tons in the previous year. The export value shrank 28.7 percent from US$6.9 billion in 2014 to US$4.9 billion in 2015.
Head of the foreign trade division of the provincial trade and industry service Gusti Yasni Iqbal said in 2016, coal exports are expected to fall again. “It is feared that exports in 2016 would fall again as there has been no sign that the global economy is about to recover soon,” Yasni said.
Coal exports have declined from the province over the past several years on weak demand and shrinking price in international market. The decline in coal exports contributed to the fall in the total export earning of the province to US$6.5 billion in 2015 from US$8.7 billion in 2014. “Increases were recorded in the exports of other commodities but their contributions to the total exports of the province was too small and was insignificant to offset the decline in the exports of coal,” he said.
The province, however, has to rely more on non coal commodities to increase its export earning as the prospects remain gloomy in coal market, he added. He said a number of industrial projects such as mineral smelter are expected to come on line soon in the province. “They are expected to contribute to increase in the exports of manufactured goods,” he said.
Chief representative of Bank Indonesia for South Kalimantan Harymurthy Gunawan said the worlds economy is expected to revive in 2016 and 2017. He predicted India and a number of other countries of destination for export commodities from South Kalimantan would begin to recover in 2016.
China, one of its main countries of destination, however, is feared to go through another year of economic slowdown, he said. The central bank predicted that the prices of crude palm oil and plywood, two major commodities of the province are expected to rise in 2017. So far in 2016, the prices of the two commodities are relatively stable giving signs of improvement, he said. The prices of coal and rubber are feared to continue to be on the decline in 2016, he added.
