BPS says exports up in 10% in seven months

Dadan Wijaksana, The Jakarta Post, Jakarta

The Central Statistics Agency (BPS) reported on Monday a rise of almost 10 percent in exports for the first seven months of the year as compared to the same period last year.

BPS said July exports stood at US$5.25 billion, bringing total figures from January to July to $35.7 billion, a 9.8 percent increase from $32.6 billion posted in 2002 of the same period.

"Of the total export revenue in July, $4.25 billion came from non-oil and gas exports, which experienced a 0.7 percent rise from the June figures," BPS chairperson Sudarti Soerbakti told a press briefing.

"This means that as of July, export performance has been encouraging, which is good for the economy," Sudarti said, adding that in July last year, Indonesia suffered a decline in both oil and gas as well as non-oil and gas exports.

The encouraging figures should provide further evidence that the country's export performance has started to recover after struggling for several years due to the global economic slowdown and a number of problems at home, including labor conflicts, security problems, inefficiency, and lack of financing.

The government has targeted the full-year exports at around $60 billion this year.

BPS also said that the trade surplus declined to $2.71 billion in July from $2.85 billion in the previous month, due in part to a pick-up in imports.

Imports rose to $2.53 billion in July from $2.42 billion booked the month earlier, with non-oil and gas imports rising to $1.96 billion from $1.91 billion in the same period.

Net exports contribute around 10 percent of the country's gross domestic product (GDP), with domestic consumption and investment being the other main contributors.

Despite a relatively low percentage in GDP, a strong performance in exports -- especially non-oil and gas exports -- is of great importance, as it reflects both robust economic activities at home and a healthy demand from overseas.

BPS data shows that Japan, the U.S. and Singapore remain the country's top three export destinations, accounting for around 40 percent of the country's total exports.

In July, Indonesia's exports to the three countries stood at $593.9 million, $657.2 million and $456.3 million, respectively.

The U.S. became the country's largest export destination in the first seven months of the year, accounting for $4.2 billion or 15.3 percent of Indonesia's exports during the period. It was followed by Japan which accounts for $3.9 billion or 14 percent of Indonesia's total exports.

RI's export performance

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June July January-July January-July

(2003) (2003) (2002) (2003) -------------------------------------------------------------- Oil & gas $1.06b $0.99b $ 6.61b $ 7.94b Non oil & gas $4.22b $4.26b $25.85b $27.71b --------------------------------------------------------------- Total exports $5.28b $5.25b $32.46b $35.65b --------------------------------------------------------------- Source: BPS