Electronics tops govt's 10 leading export commodities

JAKARTA (JP): Indonesian electronics exports grew 30.5 percent last year to US$3.2 billion, the highest of the 10 government stipulated leading export commodities.

But pulp and paper exports dropped 4.4 percent to $1.3 billion because of low prices on the international market.

The minister of industry and trade, Tunky Ariwibowo, said yesterday he was convinced export revenue from pulp and paper would rebound soon, along with the cycles's upward trend.

International pulp prices last May averaged $600 a ton, depending on the type of pulp, but the current average price is just $400 a ton, Tunky said.

He said pulp and paper was the only sector among the government's 10 to experience a drop in export growth.

Last year textile exports reached $6.4 billion, up 6.1 percent. Wood product exports rose 4.3 percent to $5.7 billion. Electronics exports were up 30.5 percent at $3.2 billion. Leather product exports rose 4.6 percent to $2.4 billion, while processed rubber exports grew 1.6 percent to $2.2 billion.

Steel and machinery exports reached $1.9 billion last year, up 11.6 percent. Processed coconut and oil palm exports stood at $1.7 billion, up 13.6 percent. Food and drink exports were up 21 percent at $915 million, while and chemical product exports were worth $767 million, up 15.7 percent.

"Exports of the 10 leading commodities in 1996 were 26.8 percent higher than in 1995," Tunky said.

He said export revenue from the 10 commodities made up 80 percent of the industrial sector's export earnings, 70 percent of non-oil and gas export earnings and 54 percent of the country's total export revenue.

Tunky said total exports in the previous (1996/1997) fiscal year to January reached $42.81 billion, up 10.23 percent compared to the same period in the 1995/1996 fiscal year.

"During this (April 1996 to January 1997) period, $10.17 billion of Indonesia's export earnings came from oil and gas, while $32.64 billion came from the non-oil and gas sector," he said.

Total imports in fiscal 1996/1997 to January reached $36.97 billion, up 6.05 percent from the same period in fiscal 1995/1996, of which $3.1 billion came from oil and gas while $33.85 billion came from the non-oil and gas sector.

Tunky said total imports last year stood at $42.9 billion, up 5.6 percent from 1995, of which $3.5 billion came from oil and gas and $39.3 billion from non-oil and gas.

He further categorized non-oil and gas imports into consumer goods, which contributed $2.6 billion to total imports, raw material and supporting material ($26.9 billion), and capital goods ($9.6 billion).

Imports of consumer goods last year were 18.2 percent higher than in 1995, while imports of raw material and supporting material were up 0.8 percent.

Capital goods imports were 11.1 percent last year higher than in 1995.

Tunky said although consumer imports grew more quickly than other categories, it contributed only 6 percent of the country's total imports.

Raw material and supporting material imports made up 62 percent of total imports while capital goods made up 22.5 percent.

"The low import rates of capital goods, raw materials and supporting materials indicates the low level of realized investment approvals," Tunky said.

"If more investment approvals to operate industrial facilities were established, our capital goods and raw material imports would be higher," he said. (pwn)