Exports up but key products down<\/p>\n
Tony Hotland, The Jakarta Post\/Jakarta<\/p>\n
Indonesia's export performance remained positive in August thanks
\nto the rising prices of oil and commodities, the Central
\nStatistics Agency (BPS) reported on Friday.<\/p>\n
But a closer look at the BPS data suggests the current surge
\nin oil prices has begun to take a toll on some of the country's
\nmain non-oil and gas export products, particularly to the key
\nU.S. market.<\/p>\n
Analysts have said the U.S. economy could be hurt by rising
\noil prices, which in turn would reduce its imports from
\ndeveloping countries like Indonesia.<\/p>\n
The BPS said that exports in August reached US$5.91 billion, a
\n4.15 percent increase from the previous month and a 17.66 percent
\nrise from the same month last year.<\/p>\n
Non-oil and gas exports rose by 3.42 percent to $4.60 billion
\nmonth-on-month, with ores, slags, and metal ashes recording the
\nlargest jump, reaching a combined value of $209.2 million from
\n$92.1 million in July.<\/p>\n
Oil and gas exports were up by 6.79 percent to $1.31 billion.
\nThe increase in oil and gas exports was attributed to soaring
\nglobal oil prices, which rose to $42.61 per barrel from $37.1 per
\nbarrel in July. However, export volume declined by 10.26 percent.<\/p>\n
Exports in the January-August period totaled $43.09 billion, a
\n5.75 percent increase from the same period last year.<\/p>\n
But the agency's data also revealed that some non-oil and gas
\nexport products like wood and wood-based products, rubber and
\nrubber-based products, non-knitted clothing, and
\nmachinery\/mechanical appliances suffered a drop in export value,
\nby 77.7 percent, 69.7 percent, 46.1 percent and 35 percent,
\nrespectively.<\/p>\n
The BPS also reported that exports to the U.S. market dropped
\nby 63.1 percent in August to $710 million, although it remained
\nIndonesia's second largest export market after Japan. The other
\nmajor destinations were Singapore and China.<\/p>\n
Oil prices have surged by about 55 percent this year. There
\nare fears that the high oil prices, recently reaching a record
\nlevel of more than $50 per barrel, will undermine exports from
\nAsia's manufacturers to developed nations, as companies cut back
\non their investments and consumers stop impulse purchases amid
\nthreats of an economic slowdown.<\/p>\n
Boosting export performance is crucial for Indonesia to push
\neconomic growth higher than the average 4 percent posted during
\nthe past few years. This year, the government expects the economy
\nto expand by 4.8 percent, and by about 5.5 percent next year on
\nimprovements in exports and robust domestic consumption.<\/p>\n
Meanwhile, imports jumped by 49 percent in August to $4.02
\nbillion from $2.70 billion in the same month last year, but were
\ndown 2.2 percent from $4.11 billion in July.<\/p>\n
The country's trade surplus increased slightly to $1.89
\nbillion during the month from $1.57 billion in July, but dropped
\nsharply from $2.66 billion in August last year.<\/p>",
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"sponsor": "Okusi Associates",
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