Economic indicators improving, says BPS<\/p>\n
JAKARTA (JP): Indonesia's economic indicators continued
\nimproving in May despite a slight drop in non-oil and gas exports
\naccording to data issued by the Central Bureau of Statistics
\n(BPS) here on Friday.<\/p>\n
The monthly inflation rate increased by 0.5 percent in June,
\ndown from the 0.8 percent increase in May while the year on year
\ninflation in the month was 2.14 percent as compared to 2.86
\npercent in the same period last year.<\/p>\n
BPS deputy for economy Kusmadi Saleh said that the rise in the
\nJune inflation was mostly contributed by the increase in food
\nprices.<\/p>\n
\"After the increase in electricity rates, elements of the food
\nprice index that had previous been negative have all turned
\npositive now,\" Kusmadi said in a press meeting.<\/p>\n
The bureau said that inflation of food stuff reached 0.16
\npercent, with meat prices rising by 4.41 percent, the highest
\nlevel recorded in the food category.<\/p>\n
The housing price index rose by 0.4 percent, contributing 0.08
\npercent to June's inflation rate, the bureau said.<\/p>\n
Kusmadi said that with January to June inflation rate already
\nreaching 2.86 percent, it was unlikely that this year's inflation
\ntarget of 5 percent could be achieved.<\/p>\n
He said that the August general session of the People's
\nConsultative Assembly (MPR) and the upcoming hike in fuel prices
\nin October was likely to inflict more inflation.<\/p>\n
\"There is no guarantee that political uncertainties will
\ndiminish after the general session of the MPR is over,\" he said.<\/p>\n
BPS recorded a decline in total exports by 2.94 percent in May
\nto US$4.8 billion from $4.9 billion in April.<\/p>\n
The drop was triggered by a decline of 3.99 percent in non-oil
\nand gas exports to $3.8 billion in May from $3.9 billion in
\nApril. Oil and gas exports rose by 1.3 percent due to soaring
\ncrude oil prices.<\/p>\n
It recorded increased crude oil prices of $27.65 per barrel in
\nMay up from $24.08 per barrel the month before.<\/p>\n
But it stated that total exports from January to May reached
\n$23.9 billion, or about 32.3 percent higher than the $18.09
\nbillion in the same period last year.<\/p>\n
Imports rose by 1.15 percent to $2.355 billion in May from
\n$2.329 billion in April, BPS said.<\/p>\n
The monthly increase was driven by imports in the non-oil and
\ngas sector, which grew to $1.9 billion from $1.8 billion during
\nthe month. Oil and gas imports declined by 2.95 percent to $440.5
\nmillion from $453.9 million in the same period.<\/p>\n
An increase of 2.14 percent in non-oil and gas imports, the
\nagency said, indicated improvements in the imports of production
\nraw materials.<\/p>\n
But of the $1.9 billion in May's non-oil and gas imports, the
\npurchase of raw material made up 75 percent, declining slightly
\nfrom 79 percent in April, it said.<\/p>\n
The trade surplus in May rose 18 percent to $2.47 billion from
\n$2.1 billion in May last year, but dropped from $2.66 billion in
\nApril.<\/p>\n
The drop was mainly caused by the fall in non-oil exports,
\nKusmadi said.<\/p>\n
\"Our industries are already too dependent on imported raw
\nmaterial, an increase only shows that production is improving,\"
\nhe said.<\/p>\n
However, he warned that if the rupiah continued to depreciate
\nit would aversely affect the ability to purchase the products by
\nthese industries.<\/p>\n
He cited the textile industry, chemical, fertilizer and public
\ntransportation services as depending largely on imported raw
\nmaterials.<\/p>\n
Kusmadi said that for instance some 45 to 48 percent of prices
\nof textile products depended on the rupiah's movement against the
\nU.S. dollar.<\/p>\n
BPS further reported that tourist arrivals in May dropped by
\n11.5 percent down to 298,815 people from arrivals of 337,818
\npeople in April.<\/p>\n
However, between the period of January to May 2000, tourist
\narrivals rose by 3.16 percent compared to the same period last
\nyear.<\/p>\n
Kusmadi said that since 1999, tourist arrivals showed a slight
\nupward trend, with several seasonal drops throughout the
\nyear.(bkm)<\/p>",
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