Current account deficit reaches over $2b

Current account deficit reaches over $2b

JAKARTA (JP): Slower growth in exports, coupled with the
speedier growth of imports, caused the country's current account
deficit to more than double to just over US$2 billion in the
January-June period from $932 million in the same period of last
year.

State Minister of Development Planning Ginandjar Kartasasmita
told the House of Representatives in a hearing here Thursday that
the country's non-oil exports increased by 6.5 percent during the
first semester of this year, as compared to 25.9 percent recorded
in the same period of 1993.

Furthermore, the prices of Indonesia's exported crude oil,
which usually provide a substantial contribution to total
exports, declined to an average of $14.20 per barrel from $18.30,
said Ginandjar, who is also chairman of the National Development
Planning Board (Bappenas).

Indonesia's non-oil imports, spurred by expansion of
investment activities, increased by 12.6 percent in the first
semester of this year, as compared to the 3.6 percent growth in
the same period of last year, he said.

However, Ginandjar said, the better growth of non-oil exports
and the increasing oil prices during the second semester will
most likely help reduce pressure on the country's current account
deficit during the same period.

The government, under its budget plan for 1994-95, projects
that the country's current account deficit will increase slightly
to $3.19 billion this fiscal year from $2.82 billion last fiscal
year.(riz)