Sept. export up 4 percent in first growth since June<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Exports in September reversed a two-month straight fall, with
\nsales rising 4.21 percent to US$5.10 billion, indicating together
\nwith a 2.54 percent surge in imports to $2.89 billion, that
\nexport markets may be heading for improvement.<\/p>\n
September export figures mark a turn from falling sales since
\nJune. \"After exports fell below the $5 billion mark in August,
\nIndonesian exports rose by 4.21 percent in September to $5.10
\nbillion,\" said the Central Bureau of Statistics (BPS) in its
\nmonthly trade and inflation report on Friday.<\/p>\n
Contributing to the higher sales were better non-oil and gas
\nexports, which rose by 3.85 percent to $3.88 billion. Sales of
\nmachinery and power equipment led the growth in this sector, the
\nreport said.<\/p>\n
Over the same period, oil and gas exports climbed by 5.57
\npercent to $1.07 billion. BPS attributed the growth to a 10.79
\npercent and 18.67 percent increase in sales of natural gas and
\noil respectively.<\/p>\n
Crude oil exports however slid by 3.12 percent on lower
\nproduction volume despite favorable world oil prices.<\/p>\n
Imports in September continued to rise, climbing by 2.54
\npercent to $2.89 billion from $2.82 billion the month before.<\/p>\n
\"The increase is caused by higher non-oil and gas imports, up
\n4.84 percent,\" BPS said, adding that imports of oil and gas
\nproducts fell by 5.89 percent instead.<\/p>\n
With export exceeding imports, trade surplus for September
\ncame to $2.21 billion, or an increase of $140 million from the
\nprevious month.<\/p>\n
Indonesia's trade surplus, or net-export, contributes around 9
\npercent to the nation's economic growth, with the other two
\ngrowth engines being investment and domestic consumption.<\/p>\n
Anticipation of better export sales could uplift growth in
\ninvestment and consumption, as exporters must expand their
\nproduction capacity through which they also generate new jobs.<\/p>\n
Since most exporters use imported raw materials for their
\nproducts, a rise in imports also often indicates manufacturers
\nanticipate higher demands.<\/p>\n
The September export rebound followed positive third-quarter
\nreports of the U.S. economy -- Indonesia's biggest export market.<\/p>\n
The U.S. gross domestic product (GDP), which measures the
\ntotal value of goods and services a country produces every year,
\ngrew by a 3.1 percent annual rate during the third quarter, as
\nagainst 1.3 percent in the previous quarter.<\/p>\n
Around 16 percent of Indonesian exports go to the U.S.,
\nfollowed by Japan with 13 percent and Singapore with 10 percent.<\/p>\n
Analysts however have warned that the surge in the U.S. GDP
\nwas unsustainable, meaning Indonesia cannot be assured of export
\nrecovery.<\/p>\n
Meanwhile, Indonesia's consumer price index in September rose
\nby 0.54 percent from a month earlier, BPS reported. Over the same
\nperiod last year, it said, the index grew by 10.33 percent, or
\nabove the government's projected rate.<\/p>\n
All price indexes recorded an increase, led by a 1.03 percent
\ngrowth in the cigarettes and tobacco sector and 0.63 percent in
\nthe transportation and communication sector.<\/p>\n
The government is expecting the 2002 inflation rate to come at
\nbelow 10 percent, but that target may be in doubt as the upcoming
\nfestive seasons in December tend to lift prices.<\/p>\n
Inflationary pressure has also been mounting since the Oct. 12
\nBali bombing as the subsequent weaker rupiah made imports more
\nexpensive.<\/p>\n
Keeping inflation down is crucial to maintain consumers'
\npurchasing power since domestic consumption makes up about 70
\npercent of the country's economic growth.<\/p>\n
Also about half of the government's Rp 55 trillion (about $5.9
\nbillion) in domestic debt payment this year is tied to Bank
\nIndonesia's benchmark rates which trails inflation movement.<\/p>",
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"sponsor": "Okusi Associates",
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