BPS reports continued upward trend in exports

BPS reports continued upward trend in exports

JAKARTA (JP): The upward trend in exports continued in April,
according to the Central Bureau of Statistics (BPS), indicating
that the economy is still recovering.

Newly appointed BPS chief Soedarti Surbakti said April's
exports increased by 0.65 percent to US$4.97 billion compared to
$4.94 billion in March.

"The increase in April's exports was caused by a 3.98 percent
increase in non-oil and gas exports to $4 billion," she said,
adding that oil and gas exports declined by 10.92 percent.

She said the most exported products included machinery and
electronics, wood products and plywood, apparels, paper and
packaging.

BPS said exports in the January-April period totaled $19.10
billion, or a 35.93 percent increase compared to the same period
last year.

Indonesia's export earnings reached a high level of $4.94
billion in March on the back of a sharp increase in non-oil and
gas exports. Exports in March rose by 3.67 percent.

Soedarti said the government's 4 percent economic growth
target this year was attainable only in the best possible
scenario, while the most pessimistic scenario was 1.5 percent.

Soedarti's predecessor Sugito Suwito surprised many economists
last month when he said the economy would only grow by 1.5
percent this year if the rupiah continued to weaken.

The rupiah has been under heavy pressure since last month,
particularly amid increasing political uncertainty in the run-up
to the general session of the People's Consultative Assembly
(MPR) in August.

Trade surplus in April dropped to $2.66 billion from $2.8
billion due to higher imports.

According to BPS, imports in April rose by 2.91 percent to
$2.31 billion compared to the previous month.

It said that non-oil and gas imports increased by 5.38 percent
to $1.87 billion, while oil and gas imports fell by 6.33 percent
to $443.7 million.

"The increase in non-oil and gas imports give a positive
signal toward a recovery in imports, particularly for raw
materials and capital goods," Soedarti said.

Indonesia's production system is heavily dependent on the
import of raw materials.

BPS said in the January to April period imports reached $8.85
billion or a 15.24 percent increase compared to the same period
last year.

It said the import of raw materials in the January-March
period increased by 19.69 percent to $4.99 billion compared to
the same period last year.

BPS added that the import of capital goods jumped by 21.36
percent during the period.

But BPS said the import of consumers goods in the first three
months of the year declined by 4.79 percent to $501.1 million.

Meanwhile, BPS also reported that inflation in May rose by
0.84 percent from the level in April, sending the year-on-year
inflation figure to 1.2 percent.

The bureau said the rise was primarily caused by the recent
increases in electricity, water and transportation costs.

Soedarti said inflation for 2000 was likely to be between 5
percent and 7 percent depending on whether the planned increase
in fuel prices was realized.

She also said that month-on-month inflation in June would not
change much.

Many analysts fear that inflation this year will surpass the 5
percent-7 percent target due to the weakening of the rupiah
against the U.S. dollar, which makes the price of imported raw
materials higher.

BPS said inflation in April was driven in particular by a 2.47
percent increase in the cost of transportation and
communications.

It said the cost of education, recreation, and sport had
increased by 0.81 percent, health care by 0.4 percent, clothing
by 0.85 percent and the housing index by 1.84 percent.

But BPS said that the price of food and beverages had declined
by 0.03 percent, while processed food and beverages, cigarettes
and tobacco had also dropped, by 0.09 percent.(rei)