Inflation rate recovers after deflation in June<\/p>\n
JAKARTA (JP): Rising food prices pushed up the inflation rate
\nin July, with the consumer price index rising 0.68 percent after
\nJune's deflation of 0.07 percent, Minister of Information Harmoko
\nsaid yesterday.<\/p>\n
Harmoko attributed the increased inflation rate to a 1.04
\npercent rise in the price of food, which had fallen 0.05 percent
\nin the previous month.<\/p>\n
"Prices of a number of food products such as eggs, milk and
\nfresh fish rose because of distribution problems, rather than
\nbecause of supply shortages," he told reporters after a monthly
\ncabinet meeting on the economy.<\/p>\n
Housing prices increased 0.42 percent in July, clothing prices
\nrose 0.51 percent and the prices of other goods and services rose
\n0.55 percent.<\/p>\n
July's inflation brought the cumulative inflation rate for the
\nJanuary to July period to 4.7 percent, much lower than the 6.09
\npercent figure recorded for the same period last year, he said.<\/p>\n
On international trade, the minister said that total exports
\nincreased slightly to US$4.07 billion in May from $4.01 billion
\nin April. Imports also increased slightly to $3.8 billion from
\n$3.6 billion.<\/p>\n
The country's monthly trade surplus, as a consequence, dropped
\nto $203.1 million in May from $366.2 million in April, he said.<\/p>\n
He said the drop in the trade surplus did not reflect the
\ncountry's worsening export performance because all of Indonesia's
\ntop-ten export products, except plywood, had gained
\nsignificantly.<\/p>\n
In the January to May period, total exports were $19.34
\nbillion and total imports were $17.17 billion.<\/p>\n
"The total surplus in the January-May period reached $2.16
\nbillion," he said.<\/p>\n
Exports<\/p>\n
According to the minister, the performances of the country's
\nmajor exports in May were promising despite the drop in the trade
\nsurplus. Textile exports, for example, increased 10.35 percent.
\nExports of processed rubber rose 8.43 percent, steel products
\nrose 38.5 percent, and coconut and palm oils rose 18.96 percent.
\nPlywood exports, on the contrary, dropped 1.23 percent.<\/p>\n
The limited cabinet meeting on economic affairs, which is held
\nevery month, discussed the latest developments in the country's
\neconomy.<\/p>\n
An important topic raised at the meeting was the assessment of
\nthe supply and demand of certain strategic commodities such as
\nrice, sugar, flour, cement and fertilizer.<\/p>\n
Harmoko said the cement supply, which was often interrupted
\nduring rainy seasons, was expected to have no major problems this
\nmonth.<\/p>\n
The cement stock, which is expected to reach 845,304 tons by
\nthe end of this month, is sufficient to meet demand, he said,
\nadding that the supply of other important commodities such as
\nrice, cooking oil and fertilizer would also remain under control.<\/p>\n
On the government's plan to promote more sugar plantations
\noutside of Java, Harmoko said that thousands of hectares of land
\nhad been appropriated.<\/p>\n
"The President has told related ministries to involve private
\ncompanies in the sugar plantation expansion," he said.<\/p>\n
A number of provinces are ready for the expansion project,
\nincluding Lampung, South Sumatra, Central Kalimantan, East
\nKalimantan, South and Southeast Sulawesi, Maluku, Irian Jaya and
\nEast Timor.<\/p>\n
Under the program, the annual sugar production in the
\nprovinces outside of Java is expected to reach 1.51 million tons
\nby the year 2000. In that year, sugar production in Java is
\nexpected to decline to 1.46 million tons, he said. (hen)<\/p>\n
Photo -- Page 3<\/p>\n
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