Economy 'still sound despite campaigns'<\/p>\n
JAKARTA (JP): Campaigning for the May 29 election has had no
\neffect on Indonesia's economy, Minister of Information Harmoko
\nannounced.<\/p>\n
Speaking after attending Wednesday's monthly meeting of
\nfinance and economic ministers at the presidential office,
\nHarmoko said that despite the election campaign, Indonesia's
\ncapital markets remained sound.<\/p>\n
\"It was reported (in the meeting) that the country's monetary
\nand financial development was sound, so it was concluded that our
\neconomic situation was quite good,\" he said.<\/p>\n
As an indication of this, he said, foreign exchange reserves
\nheld by the central bank reached a record of US$20.4 billion last
\nmonth, which was sufficient to finance 5.3 months of imports.<\/p>\n
In comparison, foreign exchange reserves in June 1993, were
\n$12.1 billion.<\/p>\n
Analysts earlier predicted that the campaign, which started on
\nApril 27, would have a short-term effect on the economy
\nespecially on foreign currency and stock trading activities.<\/p>\n
Harmoko said that the inflation rate in April was checked at
\n0.56 percent, lower than the 0.78 percent recorded in April last
\nyear.<\/p>\n
As a result, the accumulative inflation rate for the January-
\nApril period this year was 2.52 percent, lower than the 4.04
\npercent recorded during the corresponding period last year.<\/p>\n
Food prices last month rose by 0.01 percent from April 1996,
\nhousing prices increased by 0.96 percent, clothing went up by
\n0.07 percent while various goods and services increased by 0.9
\npercent.<\/p>\n
Harmoko said that Indonesia's exports in February exceeded
\n$4.42 billion, consisting of oil and gas worth $1.4 billion and
\nnon-oil and gas products valued at $3.02 billion.<\/p>\n
Total exports for February were down 4.4 percent from January
\nbut up 10.1 percent from February last year.<\/p>\n
Imports in February topped $3.09 billion, consisting of oil
\nand gas imports of $290 million and non-oil and gas imports of
\n$2.8 billion.<\/p>\n
Total imports were down 15.7 percent from January but up 7.8
\npercent from February last year.<\/p>\n
\"So for February this year, we managed to post a trade surplus
\nof $964.3 million,\" Harmoko said. This was a 67.6-percent
\nincrease from January and an 18.3-percent rise compared to
\nFebruary last year.<\/p>\n
For the April 1996 to February 1997 period, Indonesia's
\nexports exceeded $46.87 billion while imports stood at $40.07
\nbillion, giving a trade surplus of $6.8 billion.<\/p>\n
Harmoko said Wednesday's cabinet meeting also discussed the
\nperformance of Indonesia's 10 leading export commodities.<\/p>\n
During the April-January period, textile exports went up by
\n5.96 percent; processed wood products by 7.8 percent; electronic
\ngoods by 38.86 percent; leather, leather goods and footwear by
\n4.93 percent; steel, machinery and automotive products by 5.83
\npercent; processed coconut or palm oil by 12.74 percent; food and
\ndrinks by 21.11 percent; and basic chemical products by 10.94
\npercent.<\/p>\n
Commodities whose exports declined during that period were
\nrubber, which was down 0.57 percent and pulp and paper, which
\ndropped by 5.84 percent.<\/p>\n
\"The drop in pulp and paper exports is mainly due to a surplus
\nof pulp on the world market,\" Harmoko said. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/economy-still-sound-despite-campaigns-1447893297",
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