Exports jump to record level of $62.02 billion

JAKARTA (JP): Export earnings jumped to a record level of US$62.02 billion in 2000 on the back of higher levels of oil and gas exports and other commodities, the Central Bureau of Statistics (BPS) reported on Friday.

BPS head Soedarti Surbakti said that last year's export level was 27.43 percent higher than $48.67 billion in 1999.

"The increase (in the 2000 export) is quite an achievement because exports had been declining over the past two years since 1998," Soedarti told a press conference.

She said that non-oil and gas exports last year rose by 22.91 percent to $47.78 billion, while oil and gas exports jumped by 45.39 percent to $14.24 billion.

Soedarti said that the country's largest export market last year remained the U.S., Japan and Singapore.

She said, however, that exports in December declined by 1.59 percent to $5.14 billion from November's level.

"Despite the decline, exports in December still remained above $5 billion as in previous months," she said.

The strong export performance, which was above the government estimate of $55 billion, has been the most significant economic achievement of the administration of embattled President Abdurrahman Wahid.

The economic team were determined to make exports the second largest contributor to last year's economic growth after private consumption.

Economic growth in 2000 reached around 5 percent, higher than the initial projection of 3.8 percent. The economy was flat in 1999 with zero growth and contracted by almost 14 percent in 1998.

But there has been concern now that this year's export growth would be slower due to the expected slowdown in the U.S. economy, and reports of foreign buyers canceling their orders amid Indonesia's current political instability.

Soedarti added that imports in 2000 increased by 39.76 percent to $33.55 billion from $24 billion in 1999.

Higher exports are normally accompanied by higher imports as Indonesia's manufacturing industry still heavily depends on imported raw materials.

Soedarti said that imports of consumption goods throughout last year rose by 8.47 percent to $2.52 billion, while imports of raw materials and capital goods jumped by 40.51 percent to $23.54 billion and by 47.91 percent to $4.09 billion, respectively.

She said that imports in December fell by 4.49 percent to $3.39 billion from a month earlier.

Last year, the trade surplus rose to $28.47 billion from $24.57 billion in 1999 through the year amid strong oil prices over the course of 2000.

BPS also reported that the consumer price index rose by 0.33 percent in January from the previous month, sending the year-on- year inflation rate to 8.28 percent.

Koesnadi said that relatively low volatility in the exchange rate of the rupiah against the U.S. dollar since the middle of last month had contributed to lower inflation.

Bank Indonesia introduced on Jan. 12 a new measure limiting the transfer of rupiah overseas in a bid to help curb speculation against the local currency.

The measure has helped the rupiah to stabilize at around Rp 9,450 per U.S. dollar despite the current political instability created by tension between parliament and the President.

BPS said that inflation in January was a result of a 0.98 percent increase in the price of processed foods, beverages, cigarettes and tobacco, a 0.62 percent increase in the price of clothing products, 0.33 percent in health products, and 0.16 percent in education, recreation and sports products.

BPS added that prices of raw foods declined by 0.33 percent, and prices of transport and communication fell by 0.41 percent.

The decline in the price of raw foods such as fish, eggs, chicken, and vegetables was a seasonal correction after prices jumped late last year during the year-end festivities.

The government has targeted an inflation level of 7 percent this year.

But there has been concern that inflationary pressure this year would be high due to plans by the government to raise fuel prices in April.

Bank Indonesia has said that it would maintain its tight monetary policy in anticipation of high inflationary pressure. (rei)