Exports rise 13% in first four months

The Jakarta Post, Jakarta

The country's exports in the first four months of this year increased by 13.02 percent to US$19.95 billion compared to the same period last year, the Central Statistics Agency (BPS) reported on Monday.

BPS said the positive export data showed that the rapid appreciation of the rupiah against the U.S. dollar has not affected the country's export performance so far.

The rupiah has been on a rising trend against the dollar with the local unit closing at a 31-month high last week. The sharp appreciation is creating fears among exporters that their products would be less competitive against the products of countries whose currencies are not appreciating as fast as the rupiah.

The government is hoping that the export sector could start to play a greater role in pushing this year's economic growth rate at 4 percent, compared to 3.7 percent last year, amid signs of weakening domestic consumption. Domestic consumption has been the main engine for growth during the past couple of years.

BPS did not provide an explanation for the higher exports, but many economists have said that despite the global economic slowdown, the country's exports were relatively unaffected as they mainly consisted of low-end manufacturing products and agriculture and mining commodities.

In regards the three largest export destinations -- the U.S., Japan and Singapore -- BPS said that while exports to the U.S. and Japan increased in April, exports to Singapore were declining as the country battled to curb the spread of Severe Acute Respiratory Syndrome (SARS).

The agency said that non-oil and gas exports, mainly industrial products, contributed 76 percent of the total exports in the first four months, while oil and gas exports contributed 24 percent.

Meanwhile, non-oil and gas exports in April rose by 1.72 percent to $3.88 billion and non-oil and gas exports from January to April increased by 8.34 percent compared to the same period last year.

BPS said that total exports in April declined by 1.27 percent from the previous month mainly because of lower oil and gas exports, as the international prices of the two commodities fell.

BPS also reported that imports from January to April rose by 23.50 percent, compared to the same period last year, to $11.13 billion.

However, imports in April weakened by 6.66 percent to $2.69 billion from the previous month, which may be further evidence that production activities at home remain slow.

The trade surplus for April was $2.31 billion, compared with $2.19 billion in March.

BPS said that while imports of consumption goods and raw materials during the first four months of this year increased by 32.5 percent and 28.79 percent, respectively, imports of capital goods declined by 9.97 percent.