Non-oil exports fall for the first time<\/p>\n
JAKARTA (JP): For the first time in ten years Indonesia's non-
\noil exports have declined, raising concerns in a cabinet meeting
\non economy at the Bina Graha presidential office here yesterday.<\/p>\n
\"President Soeharto ordered related ministers to study the
\ncauses of the decline in non-oil exports in January and learn why
\nthe changes in demand were taking place.\" Minister of Information
\nHarmoko made this announcement after a limited cabinet meeting on
\neconomy.<\/p>\n
Harmoko said that Indonesia's export of non-oil products fell
\nby 11.7 percent to US$1.89 billion in January from $2.14 billion
\nin the same month of 1993, while export of oil and gas declined
\nby 10.9 percent to $763 million from $856.31 million.<\/p>\n
Indonesia, however, enjoyed a trade surplus of $597.2 million
\nin January despite of the export decline, he said.<\/p>\n
The January imports fell by 3.9 percent to $2.05 billion from
\n$2.14 billion in the same month last year.<\/p>\n
The country's exports have already fallen by 4.9 percent to
\n$3.19 billion last December from a year before due to a sharp
\ndecline in oil prices on the world market.<\/p>\n
\"The government will soon take concrete measures to boost the
\ncountry's non-oil exports,\" Harmoko said.<\/p>\n
The government, realizing that oil prices had fallen steadily
\nsince the early 1980s, has taken several steps. This has included
\nthe rupiah devaluations in 1983 and 1986 and the reduction of
\nbarriers for imports of raw materials to promote non-oil exports.<\/p>\n
Harmoko said the President, who is also chairman of the Non-
\nAligned Movement (NAM), instructed Minister of Trade Satrio
\nBudiardjo Joedono to appoint a team to coordinate trade
\ncooperation among developing countries, which may also help
\nincrease Indonesia's exports.<\/p>\n
Inflation<\/p>\n
Harmoko said that the cabinet meeting also dealt with
\ninflation, which fell to 0.7 percent last month from 1.76 percent
\nin February and 1.25 percent in January.<\/p>\n
\"The inflation of 3.71 percent in the first three months of
\nthis year is far lower than 6.44 percent in the same period of
\nlast year,\" he said.<\/p>\n
According to the government, the high inflation rate in the
\nfirst quarter of last year was caused by increases in fuel
\nprices, electricity billing rates and transportation fares, while
\nthe high rate in the January-March period was caused mainly by
\nfloods and increasing demand for goods prior to last month's Idul
\nFitri holiday.<\/p>\n
The government, under its State Policy Guidelines, is
\ncommitted to keeping the rate of inflation to a maximum of five
\npercent per annum.<\/p>\n
The information minister said that last month's inflation was
\ncaused by increases of food prices in the capitals of the
\ncountry's 27 provinces by an average of 1.6 percent. Clothing
\nprices also rose by 1.41 percent. The prices of housing increased
\nby only 0.07 percent and other goods and services by 0.04
\npercent.<\/p>\n
Even though food prices rose by an average of 1.6 percent, the
\nprices of rice fell by an average of 2.44 percent to Rp 609.29
\n(28.4 U.S. cents) per kilo last month from Rp 624.58 in February
\ndue to the start of the harvest season in the country, he said.<\/p>\n
He said the money supply increased by 8.9 percent to Rp 40.35
\ntrillion as of January from Rp 37.03 trillion as of last
\nDecember.<\/p>\n
Harmoko said the meeting also discussed the damages of rice
\nand secondary crops caused by floods in Java, Sumatra, Sulawesi
\nand West Nusa Tenggara.<\/p>\n
\"The President wants a delay for the repayment of credits by
\nfarmers whose crops have been damaged by floods,\" he said.(riz)<\/p>",
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