Exports fare better than expected: BPS

Exports fare better than expected: BPS

Dadan Wijaksana, The Jakarta Post, Jakarta

The country's export performance turned out last year to be
better than many had expected, thanks to stronger exports of
agriculture and low-end manufacturing products.

The Central Statistics Agency (BPS) reported on Monday that
the value of exports rose by 1.21 percent to US$57 billion last
year, compared with the level in 2001.

"The increase in full-year (export) performance was mainly
driven by a rise in non-oil and gas exports. The rise was good
enough to offset a decline in oil and gas exports," BPS chief
Soedarti Surbakti told a media conference.

Non-oil and gas exports increased by 2.8 percent to $44.9
billion during the year, from $43.7 billion in 2001. This came as
exports in the oil and gas sector were down to $12.1 billion,
from $12.7 the previous year.

Soedarti said the relatively better export performance during
the year was helped by a better-than-expected showing of the
Japan, U.S. and Singapore economies.

The three countries have long become the nation's main export
destinations, absorbing around 38.6 percent of the country's
total non-oil and gas exports.

Non-oil and gas exports to Japan, the U.S. and Singapore in
December alone stood at $579 million, $497 million and $324.7
million respectively.

Analysts and industry players had previously painted a bleak
picture for 2002 exports due to a host of problems, including the
global economic slowdown and domestic uncertainties like
lingering labor disputes and security problems, which prompted
some foreign buyers to shift orders to other countries.

However, despite a stronger showing in 2002, the contribution
to economic growth remains paltry. The 2002 trade surplus, known
also as net exports, contributed less than 10 percent to the
nation's economic growth.

Over the past few years, the country's economic growth has
been driven mainly by domestic consumption. Economists have said
that without a significant role from exports and investment, the
country could not expect to sustain economic growth at 5 percent
to 6 percent, necessary to generate sufficient employment and
help reduce poverty.

This year, the government has targeted non-oil and gas exports
to grow by 5 percent, thereby still relying on agriculture and
low-end manufacturing products, which have proved to be
relatively resilient against economic recessions in the developed
economies. Meanwhile, the economy is projected to grow by around
4 percent, slightly higher than growth in 2002.

The above export figures should be a good start and confirm
that there is still plenty of room for improvement in the
country's export performance.

With consumer spending already showing signs of slowing down,
plus investor reluctance to commit to the country, given the
unfavorable business climate, turning to exports should be the
most feasible option for the government to drive the economy.

Elsewhere, BPS said that imports in 2002 totaled $31.24
billion, 0.9 percent higher than the level in 2001.

This means the annual trade surplus increased by 1.5 percent
to $25.75 billion, from $25.36 billion achieved in 2001.