Inflation falls to the year's new low<\/p>\n
JAKARTA (JP): Inflation fell to this year's low of 0.24
\npercent in April after reaching its peak of 1.76 in February.<\/p>\n
Minister of Information Harmoko told reporters that last
\nmonth's low inflation was caused mainly by a 0.71-percent decline
\nin food prices.<\/p>\n
He made the announcement after a limited cabinet meeting on
\neconomy at the Bina Graha presidential office here yesterday.<\/p>\n
\"The prices of eggs and milk, for example, dropped by 7.14
\npercent, meat by 2.76 percent, grains by 2.47 percent and fish by
\n0.83 percent last month,\" he said.<\/p>\n
Substantial increases in food prices due to the interruption
\nof transportation by floods caused inflation to reach 1.25
\npercent in January and 1.76 percent in February before falling
\nback to 0.7 percent in March.<\/p>\n
Harmoko said housing prices increased by 0.9 percent last
\nmonth, clothing prices by 0.29 percent and the prices of other
\ngoods and services by 0.6 percent.<\/p>\n
\"In spite of the drop in the inflation rate from last month,
\nPresident Soeharto reiterated his instructions that all
\ngovernment institutions should continue their efforts to lower
\nthe growth rate of consumer prices in the coming months,\" he
\nsaid.<\/p>\n
Economists have expressed concern that the high inflation in
\nthe first three months of this year, the government's plan to
\naccelerate the depreciation of the rupiah against the U.S.
\ndollar, and the increase of U.S. interest rates, has encouraged
\nmoney owners to save their funds in U.S. dollar deposits, thereby
\ncausing capital flights.<\/p>\n
Exports<\/p>\n
Harmoko said the cabinet meeting also discussed the country's
\nexports and imports. Exports increased to US$2.79 billion --
\nincluding non-oil exports of $706 million -- in February from
\n$2.65 billion in the previous month. Imports rose to $2.15
\nbillion from $2.05 billion.<\/p>\n
\"The country, therefore, enjoyed a trade surplus of $649.2
\nmillion in February,\" he said.<\/p>\n
Last year at the same time, Indonesia enjoyed a trade surplus
\nof $1.08 billion, with net exports worth $2.95 billion and net
\nimports worth $1.88 billion.<\/p>\n
Harmoko said the President warned that Indonesia's trade
\nsurplus with six of its 20 major trade partners -- Japan,
\nSingapore, Hong Kong, China, Thailand and the United Arab
\nEmirates -- was decreasing steadily in the last 11 months.<\/p>\n
Indonesia even started to suffer deficits in January in its
\ntrade with Saudi Arabia and Italy, which caused a surplus
\nbeforehand, the minister said.<\/p>\n
Soeharto called on his cabinet to look for the causes of the
\ndecline in Indonesia's exports to those countries and take the
\nnecessary steps to increase them in the future, Harmoko said.<\/p>\n
The minister said the Indonesian money supply -- in terms of
\ncurrency and demand deposits-- declined by almost four percent to
\nRp 38.45 trillion ($17.9 billion) as of March from Rp 40.04
\ntrillion as of February. (riz)<\/p>",
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