Consumer price index up 0.27 percent in August

JAKARTA (JP): Indonesia's consumer price index (CPI) increased 0.27 percent in August, compared with 0.68 percent in July, Minister of Information Harmoko announced yesterday.

Speaking after a limited cabinet meeting on the economy, Harmoko said that food prices fell by an average of 0.35 percent but that housing prices in the same month rose 0.27 percent, clothing prices 0.16 percent and other goods and services were up 1.16 percent.

August's CPI brought the cumulative inflation rate for the January to August period to 4.98 percent, down from 6.41 percent during the same period of last year.

Harmoko quoted President Soeharto as saying during the meeting that the low inflation was due to an abundant supply of primary goods.

"The President has also instructed the ministers concerned to prepare the necessities of the general public ahead of the Christmas holiday in December, and the New Year and Idul Fitri holidays in January and February next year," he said.

Harmoko said that money supply as of July this year reached Rp 57.7 trillion (US$24.99 billion).

On international trade, Harmoko said that the country's exports rose slightly to $4.14 billion in June from $4.07 billion in May, while imports increased to $3.95 billion from $3.8 billion.

As a result, Indonesia's trade surplus in June dropped to $193.4 million in June from $203.1 million in May.

During the period of January to June this year, total exports reached $23.49 billion, while total imports amounted to $21.20 billion, for a six-month trade surplus of $2.29 billion.

He said that of the top ten export products, textiles remained on top during the January-May period and recorded an increase of 8.24 percent from $2.27 billion during the same period of last year.

He said that Indonesia saw tourist numbers increase 20.7 percent to 2.37 million during the January-July period of this year.

In July alone, the country's foreign exchange revenues from the tourism sector reached $462.83 million.

During the January-July period, the country's revenues from foreign tourists reached $2.83 billion, up 22.2 percent from the same period last year.

In the area of cement products, he said the supply during the July to September period would be enough to meet local demand. Cement stocks at the end of this month are expected to reach 306.317 tons.

He acknowledged that cement prices are increasing in Central and East Java. "The price increases are being caused by a sudden surge in local demand over the last few days, which has caused supply shortages at market places. But efforts are being made to tackle the problem," he said. (13)