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Indonesia is Southeast Asia’s largest economy and while Indonesia’s annual growth slowed down to 4.5% in 2009, it expanded to 6.1% in 2010. Some economists predict that Indonesia’s economic growth may reach 8% in 2011. During the difficult global conditions of 2009, Indonesia’s economy was among the top worldwide performers. Stock market valuation was up 87% in 2009 and 46% in 2010 and from 2000 until 2010, Indonesia’s average annual GDP growth was 5.17% with a stable currency and improved sovereign credit status.
The consumer market continues to grow in the world’s fourth-largest country. There are more than 237 million citizens, 50% of whom are under the age of 30. GDP per person exceeds its Association of Southeast Asian Nations (ASEAN) neighbors such the Philippines and Indonesia has a GDP per person three times that of Vietnam. Indonesia is a thriving democracy with significant regional autonomy. It is located on the world’s major trade routes and has extensive natural resources. It is a top-ten market for U.S. agricultural products and within the top 30 overall markets for U.S. exports. Indonesia has ratified the Cape Town Treaty, which gives U.S. aircraft exporters access to financing through international protection and registration of financial interests.
On May 7th, U.S. Reps. Sam Graves (MO-06) and Scott Tipton (CO-06) introduced separate bills aimed at federal export promotion efforts.
The Export Coordination Act (HR 5393), introduced by Rep. Graves, proposes to increase coordination between state and federal agencies to streamline the export process. Among other provisions, it directs the Trade Promotion Coordinating Committee (TPCC) to clearly define the role of each member agency in the export process. It also directs the TPCC to work with member agencies to provide a detailed listing of future trade missions and make the list public.
World Trade Month: Promoting Products Made in the U.S. Abroad
May, designated as World Trade Month, is marked by events across the country to promote U.S. trade relationships and provide resources to U.S. businesses looking to export their goods and services around the world. This year it has particular significance – the Obama Administration and the Commerce Department have made increasing exports and revitalizing America’s manufacturing sector among their top priorities. It makes good business sense to link the two. Both manufacturing and exporting play a role in strengthening our economy, creating jobs and opening up opportunities for minority-owned businesses.
In 2011, the United States hit an all-time record of $2.1 trillion in U.S. exports. More than half of that -- about $1.3 trillion – was manufactured goods. And manufacturing not only drives exports, it also spurs innovation. Last year, manufacturing was responsible for 70 percent of our private sector R&D and 90 percent of our patents, according to a newly released Commerce Department report. The report also shows that manufacturing workers earn pay and benefits about 17 percent higher than other workers.
The role of the manufacturing sector in the U.S. economy is more prominent than is suggested solely by its output or number of workers. It is a cornerstone of innovation in our economy: manufacturing firms fund most domestic corporate research and development (R&D), and the resulting innovations and productivity growth improve our standard of living. Manufacturing also drives U.S. exports and is crucial for a strong national defense.
The current economic recovery has witnessed a welcome return in manufacturing job growth. Since its January 2010 low to April 2012, manufacturing employment has expanded by 489,000 jobs or 4 percent1— the strongest cyclical rebound since the dual recessions in the early 1980s. From mid-2009 through the end of February 2012, the number of job openings surged by over 200 percent, to 253,000 openings. 2 Coupled with attrition in the coming years from Baby Boomer retirements, this bodes well for continued hiring opportunities in the manufacturing sector.3
Joe McClure, District Director
Montana District Office
U.S. Small Business Administration
Your success is our goal – that’s why this month I’m focusing on dispelling the myths of business loans and giving you tips and tools so you are well prepared when applying for a business loan. The Small Business Administration is here to help and give you a leg up on getting a small business loan.
A common misconception is that SBA loans money directly to small businesses. We do not. We do, however, guaranty loans made through local approved lenders. The SBA guaranty reduces the risk to the financial institution and may provide the lender with more flexibility in credit decisions. Contact your lender directly to apply for an SBA loan or visit our website to find a local SBA lender.
We recommend approaching the financial institution you currently do business with first. They have first-hand knowledge about you, your character and your history. If your bank says no, don’t be discouraged; think of it as an opportunity to shop around! Some lenders do not make certain types of loans, so although you may not qualify for a loan at one institution, you may be approved at another.