Exports in 2003 rose again: BPS says

The Jakarta Post, Jakarta

Indonesia's exports in 2003 rose by 6.76 percent from a year earlier, partly because of a pick up in global demand and a high international oil price, according to local analysts at the Central Statistics Agency (BPS).

The full-year exports stood at US$61 billion as against $57.2 billion posted in 2002, BPS chairwoman Sudarti Surbakti announced on Tuesday when unveiling the agency's latest monthly data.

"Exports in 2003 fared better than 2002 and 2001, which shows that global demand is on the rise, moving accordingly with a gradual recovery in the world economy," Sudarti replied, when asked whether the rise was to do with a pick up in the global economy.

A relatively strong international oil price had also contributed to the export rise, Sudarti said, pointing out at exports for non-oil-and-gas products which rose by 5.18 percent, while oil and gas exports increased by 12.63 percent.

Sudarti predicted that the trend in global demand would continue this year, betting on an acceleration in the world economic recovery.

The global economic slowdown, along with an adverse business climate here, has hampered efforts to boost exports over the past years.

Another major factor is that the euro, the yen, the Singapore dollar and Australian dollar have each gained over 20 percent against the rupiah in the last year. Europe, Singapore, Japan and Australia are all major importers of Indonesian goods.

Robust exporting is needed to help generate higher economic growth, which is currently relying on domestic consumption, as investment remains in the doldrums.

At the moment, net exports contribute just slightly above 20 percent of the country's economic growth.

Electric equipment and machinery topped the list of the country's major non-oil and gas export commodities, as mechanical equipment and machinery; animal and vegetable fats and oil came in second and third respectively. Other top non-oil and gas export commodities include ores and metal residues, non-knitted textiles, rubber and rubber-based products, paper, knitted products and footwear.

As for imports, some $32.39 billion were recorded throughout 2003, bringing a trade surplus for the year of $28.63 billion as against $25.90 billion in 2002, BPS added.

The figure was a 3.52 percent rise from imports the year before.