High housing costs raise inflation<\/p>\n
JAKARTA (JP): Higher housing prices in October brought the
\ncountry's inflation level close to 10 percent in the first 10
\nmonths of this year, causing concern to the government which just
\nraised electricity rates by 7.68 percent.<\/p>\n
\"The inflation, which fell from 0.89 percent in August to 0.53
\npercent in September, rose again to 0.89 percent last month,
\nbringing the cumulative inflation in the January-October period
\nto 8.27 percent,\" Minister of Information Harmoko told reporters
\nafter a cabinet meeting at the Bina Graha presidential office
\nhere yesterday.<\/p>\n
\"President Soeharto has ordered all government institutions to
\nimprove coordination to curb rises in consumer prices so that
\ninflation will not reach 10 percent this year,\" the minister
\nsaid, adding that facilities for goods transportation, for
\nexample, should be improved to expedite distribution.<\/p>\n
Harmoko explained that last month's high inflation was caused
\nmainly by the average increase of 1.4 percent in housing prices
\nin the capitals of the country's 27 provinces. The prices of food
\nrose by 0.84 percent, clothing by 0.47 percent and other goods
\nand services by 0.44 percent.<\/p>\n
The increases in housing costs were led by the surge of cement
\nprices in a number of provinces, where construction activities
\nincreased during the prolonged dry season. Cement production and
\nimports could not meet the rising demand.<\/p>\n
The minister acknowledged that the domestic cement producers
\nare not likely to be able to meet the rising demand until 1997,
\nwhen a number of companies will have substantially increased
\ntheir production capacities.<\/p>\n
Yesterday's meeting, which was attended by Vice President Try
\nSutrisno, economics ministers and senior economics sector
\nofficials, also reported a 14.5 percent increase in the money
\nsupply to Rp 42.4 trillion (US$19.4 billion) as of September from
\nRp 37.03 trillion as of the end of last year.<\/p>\n
Exports<\/p>\n
Harmoko said Indonesia's exports slightly increased to $3.56
\nbillion in August over $3.5 billion in the previous month.
\nHowever, because its imports rose to $2.72 billion from $2.68
\nbillion, its trade surplus fell to $840.3 million from $884.6
\nmillion.<\/p>\n
The August exports consisted of $2.71 billion in non-oil
\nproducts and $855.6 million in oil and gas, he said.<\/p>\n
Cumulatively, the country's exports were recorded at $25.49
\nbillion, of which $19.27 billion was contributed by non-oil
\nproducts and $6.22 billion by oil and gas, while its imports
\nreached $20.12 billion, he said.<\/p>\n
\"The country, therefore, gained a trade surplus of $5.36
\nbillion in the January-August period,\" he said.<\/p>\n
On tourism, Harmoko said that the number of tourist arrivals
\nin Indonesia during the first nine months of this year increased
\nby 18.2 percent to 2.45 million over the same period of last
\nyear, with total foreign exchange spending of about $2.88
\nbillion.<\/p>\n
In September alone, the number of tourist arrivals increased
\nby 19 percent to 292,502, he said.<\/p>\n
\"We expect that the number of tourists visiting Indonesia this
\nyear will reach four million, as compared to last year's 3.5
\nmillion,\" he said.<\/p>\n
Harmoko said the meeting also discussed a plan to offer a 25
\npercent discount on telecommunication billing rates to
\nparticipants of and journalists covering the meetings of the Asia
\nPacific Economic Cooperation (APEC) forum in Jakarta and Bogor,
\nbeginning next week.<\/p>\n
\"A total of 5,184 hotel rooms in Jakarta have been prepared
\nfor the participants and journalists, whose number will likely
\nreach 4,274,\" he said.<\/p>\n
He said eight hotels in Jakarta will be used to accommodate
\nthe heads of state taking part in the APEC Economic Leadership
\nMeeting. (riz)<\/p>",
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