'Exports down, imports up in August'

The Jakarta Post, Jakarta

The Central Statistics Agency (BPS) said on Tuesday exports declined by 2.27 percent to US$4.90 billion in August from $5.01 billion in the previous month, while imports increased to $2.82 billion from $2.60 billion.

BPS deputy chief Slamet Mukeno said the higher imports were propelled by import of machinery, raising expectations that the country's manufacturers were gearing up to boost exports in the coming months.

Out of 10 main items, machinery occupied the biggest contributor for the overall increase in imports, in which machinery import increased 18.13 percent in August.

"This shows positive signs that exports could pick up in three months time," said Slamet.

Indonesia's production system is heavily dependent on the import of capital goods and raw materials.

But economist Raden Pardede said that it was too early to conclude that the higher import of machinery would lead to higher exports.

He pointed out that the manufacturers may not necessarily target the export market.

"More data is needed to come up with a clearer picture of the export outlook," he said.

Indonesia's export performance has been weakening during the past couple of months amid the global economic slowdown. Exports are crucial to help push the country's economic growth to 5 percent next year from the projected 4 percent this year. So far, economic growth has been mainly relying on domestic consumption.

BPS said that the lower exports and higher imports led to a 13.7 percent decline in trade surplus to $2.08 billion.

The agency said that the export decline was caused by a 3.7 percent fall in non-oil and gas exports to $3.88 billion from $4.03 billion.

It said that oil and gas exports actually increased to $1.01 billion from $978.5 million.

BPS said that from January to August, exports fell to $37.35 billion from $39.34 billion in the same period last year.

The agency said that the U.S., Japan, and Singapore remained the country's largest export destinations.

Exports to the U.S. fell sharply to $562.6 million from $647.4 million in July, while exports to Japan rose to $603.6 million from $535.6 million.

Exports to Singapore fell 27 percent from July to $341.9 million in August.