Indonesia live from tobacco

The Trade Ministry estimates that this year's cigarette exports may surpass US$400 million (Rp 3.6 trillion), with Cambodia being the country's main export destination with a total export value of almost $150 million.

The ministry's secretary-general, Ardiansyah Parman, said Thursday that the current cigarette export achievement had shown a positive trend despite the US ban on clove cigarettes significantly influencing Indonesia's cigarette exports to the country.

"Currently, Cambodia is the largest export destination for our cigarettes," he said at a discussion in Jakarta as quoted by detikFinance news portal.

The US ban on clove cigarettes would not have too much of an impact on Indonesia's overall cigarette exports, he added.

Ardiansyah explained that Indonesia's cigarette exports in the first nine months of the year reached $357.05 million, a 25 per cent increase from only $283.75 million in the same period last year. In 2009, the country's total cigarette exports touched $410.49 million.

"This year, our exports can exceed $400 million," he said.

During that period, Ardiansyah continued, exports to Cambodia were $139.35 million, increasing 25.1 per cent from the same period last year. In 2009, the country's cigarette exports to Cambodia were $158.3 million.

The ministry's data show that Malaysia was the second largest cigarette export destination. From January to September this year, exports to Malaysia reached $90.6 million, increasing from $65.49 in the same period in 2009. Last year, the total export value to the country was $95.5 million.

The third largest importer of Indonesian cigarettes is Singapore, the data reveal. In the first nine months of 2010, the export value hit $57.6 million, up from only $46.8 million. Last year, Indonesia's cigarette exports to Singapore were $38.1 million.

Another Southeast Asian country, Thailand, also stands among the largest importers of Indonesian cigarettes. From January to September this year, the export value was $16.9 million, declining from $22.06 million from the same period last year.

From January to October, Indonesia's total export value reached $125.13 billion, 35.45 per cent higher than in the same period last year. That achievement was mainly driven by soaring commodity prices that pushed up foreign exchange revenue from non-oil and gas exports.

Japan, the US and China remained main export destinations for Indonesian goods.

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