Exports increase to three-year high<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Exports in June increased by 7.33 percent to US$5.28 billion, the
\nhighest monthly export value in the past three years, the Central
\nStatistics Agency (BPS) reported on Friday.<\/p>\n
The agency said that this should provide further evidence that
\nthe country's export performance had started to recover after
\ndwindling last year due to the global economic slowdown and a
\nnumber of problems at home.<\/p>\n
BPS said that exports in the first semester of this year also
\nincreased by 10.53 percent to $30.35 billion in the same period
\nlast year.<\/p>\n
While the agency said in its report that the higher export was
\nmainly driven by oil exports (international prices of oil
\ndeclined during the period), BPS deputy chief Slamet Mukeno said
\nthat there had been strong demand for Indonesian non-oil and gas
\nproducts from the U.S. and China.<\/p>\n
The U.S. has been the country's traditional export market,
\nwhile China has also started to become the target of local
\nexporters. The U.S. authority reported earlier stronger-than-
\nexpected economic growth in the second quarter, raising hopes
\nthat recovery was on the way.<\/p>\n
BPS said that non-oil and gas exports in June rose by 7.71
\npercent to $4.22 billion from the level in May, while first
\nsemester figures grew by 7.30 percent to $23.41 billion.<\/p>\n
Export value to the U.S. in June totaled $622.5 million. No
\nfigure was given for the amount of exports to China.<\/p>\n
Slamet said he was optimistic the country's full-year export
\ntarget of around $60 billion this year could be achieved even if
\nexport growth would be flat in the coming months.<\/p>\n
Indonesia has been struggling to boost exports after a poor
\nperformance last year as the global economy had been suffering
\nfrom years of recession, while local exporters had to deal with
\nvarious local problems, including labor conflict, security
\nproblems, inefficiency, and the lack of financing facility.<\/p>\n
Increasing exports is crucial to achieve a stronger economic
\ngrowth needed to help absorb the huge unemployment problem
\ncreated by the late 1990s economic crisis.<\/p>\n
Experts have said that in order to push exports higher, the
\ngovernment must quickly eliminate the rampant illegal levies
\ncollected by corrupt officials, resolve the labor problems, and
\npush banks to provide affordable loans to exporters so they could
\ninvest in new machinery to help boost competitiveness against
\nexports from other countries like China, India, and even Vietnam.<\/p>\n
Meanwhile, BPS also reported that imports in June declined by
\n15.24 percent to $2.43 billion from the level in the previous
\nmonth, while first semester imports were also down by 16.76
\npercent to $16.29 billion compared to the level in the same
\nperiod last year.<\/p>\n
The statistics gave further evidence that the country has not
\nseen significant amounts of new investments both by foreign
\ninvestors and domestic investors.<\/p>\n
Analysts have said that because of lingering uncertainties
\ninvestors have so far declined to make new investments despite
\npositive progress in the area of macroeconomy as reflected in the
\nstronger exchange rate of the rupiah, lower inflation, and
\nfalling Bank Indonesia benchmark interest rate.<\/p>\n
Indonesia's production system is heavily dependent on imported
\nraw materials.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/exports-increase-to-three-year-high-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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