Indonesian exports to dip
INDONESIAS commodity exports are set to decline this year, according to figures released by the trade and industry department.
Cocoa sales are forecast to drop to $338 million (£205m), against $360m last year, while coffee exports will drop from $510m to $479m.
Indonesia is the worlds third largest producer of both coffee and cocoa.
The US Department of Agriculture (USDA) expects Indonesia to produce a record 310,000 tonnes of cocoa in the 1998-99 season.
USDA puts coffee output at 6.8m bags, 6% lower than in 1997-98.
The crop is still recovering from a severe drought in 1997 that damaged coffee trees and delayed the harvest.
Indonesias overseas sale of crude palm oil have already begun to fall because of a rise in export taxes to 60%.
Production has also been hit by heavy rain and growers say output fell 15% last month.
The industry ministry predicts that crude palm oil exports will total $505m this year against $538m in 1998.
- Financial Times 22/01/99 page 26 (News Digest)