Exports rise on rupiah's slump, robust demand
Exports rise on rupiah's slump, robust demand
Dadan Wijaksana, Jakarta
A weaker rupiah and strong global demand helped boost the
country's exports in the first half of the year, with the Central
Statistics Agency (BPS) reporting a 3.14 percent increase from
the same period last year.
Total exports as of June reached US$31.41 billion compared to
$30.45 billion during the same period in 2003, BPS head Choiril
Maksum said on Monday.
"The decline in the rupiah has to some extent made our
products more competitive in the international market. But a
strong economic showing in the U.S., Japan and Singapore also
helped," Choiril said.
The U.S., Japan and Singapore are the country's main export
destinations, with the three absorbing some 38 percent of the
country's total non-oil and gas exports. As the economies of the
three countries have improved, global trade has received a boost
in line with the rising demand.
The weakening rupiah makes the country's exports relatively
cheaper in the export market compared to products coming from
countries whose currencies have not depreciated as fast as the
rupiah.
After hovering at around 8,400 per dollar at the start of the
year, the local unit -- which has had to endure various shocks
including soaring oil prices, a U.S. interest rate hike and
political uncertainty at home due to the elections -- weakened to
as low as 9,400, making the rupiah Asia's worst performing
currency.
Choiril was upbeat about the prospects for exports in the
coming months. He said that despite expectations for a rebound in
the rupiah, the predicted continued recovery in the global
economy should further increase demand for exports.
In June alone, Indonesia's total exports stood at $5.69
billion, the fourth consecutive month exports were above the
psychologically important $5 billion level. The country remains
on track to meet its full-year export target of $60 billion.
Indonesia wants to improve its export performance to
contribute more to economic growth, so the country will not be
overly dependent on domestic consumption to drive the economy. At
present, exports make up less than 15 percent of gross domestic
product.
Elsewhere, the BPS said non-oil and gas exports grew by close
to 3 percent during the first half of the year, mainly on the
back of the higher export of mining products (growing by 8.4
percent) and industrial products (1.9 percent).
Exports of agricultural products declined by 2.8 percent.
Industrial products again made up the largest percentage of
overall exports, accounting for about 65.5 percent of total
exports. Gas and oil exports accounted for 23.6 percent.
Meanwhile, imports in June rose 9.9 percent to $3.54 billion
from $3.22 billion the previous month. Imports during the first
half of the year increased by 27.2 percent to $20.38 billion
compared to the same period last year.
The country's trade surplus fell slightly to $2.15 billion in
June from $2.28 billion in May and $2.85 billion in the same
month last year.
Analysts said the lower trade surplus meant the country needed
to work harder to push exports.
Dadan Wijaksana, Jakarta
A weaker rupiah and strong global demand helped boost the
country's exports in the first half of the year, with the Central
Statistics Agency (BPS) reporting a 3.14 percent increase from
the same period last year.
Total exports as of June reached US$31.41 billion compared to
$30.45 billion during the same period in 2003, BPS head Choiril
Maksum said on Monday.
"The decline in the rupiah has to some extent made our
products more competitive in the international market. But a
strong economic showing in the U.S., Japan and Singapore also
helped," Choiril said.
The U.S., Japan and Singapore are the country's main export
destinations, with the three absorbing some 38 percent of the
country's total non-oil and gas exports. As the economies of the
three countries have improved, global trade has received a boost
in line with the rising demand.
The weakening rupiah makes the country's exports relatively
cheaper in the export market compared to products coming from
countries whose currencies have not depreciated as fast as the
rupiah.
After hovering at around 8,400 per dollar at the start of the
year, the local unit -- which has had to endure various shocks
including soaring oil prices, a U.S. interest rate hike and
political uncertainty at home due to the elections -- weakened to
as low as 9,400, making the rupiah Asia's worst performing
currency.
Choiril was upbeat about the prospects for exports in the
coming months. He said that despite expectations for a rebound in
the rupiah, the predicted continued recovery in the global
economy should further increase demand for exports.
In June alone, Indonesia's total exports stood at $5.69
billion, the fourth consecutive month exports were above the
psychologically important $5 billion level. The country remains
on track to meet its full-year export target of $60 billion.
Indonesia wants to improve its export performance to
contribute more to economic growth, so the country will not be
overly dependent on domestic consumption to drive the economy. At
present, exports make up less than 15 percent of gross domestic
product.
Elsewhere, the BPS said non-oil and gas exports grew by close
to 3 percent during the first half of the year, mainly on the
back of the higher export of mining products (growing by 8.4
percent) and industrial products (1.9 percent).
Exports of agricultural products declined by 2.8 percent.
Industrial products again made up the largest percentage of
overall exports, accounting for about 65.5 percent of total
exports. Gas and oil exports accounted for 23.6 percent.
Meanwhile, imports in June rose 9.9 percent to $3.54 billion
from $3.22 billion the previous month. Imports during the first
half of the year increased by 27.2 percent to $20.38 billion
compared to the same period last year.
The country's trade surplus fell slightly to $2.15 billion in
June from $2.28 billion in May and $2.85 billion in the same
month last year.
Analysts said the lower trade surplus meant the country needed
to work harder to push exports.