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)