Exports up by 21% in first nine months of year

The Jakarta Post, Jakarta

The Central Statistics Agency (BPS) reported on Tuesday that the country's exports showed continuous growth during the first nine months of the year, driven by higher demand for non-oil products.

Supported by stronger global demand for electronic and mechanical goods, January-to-September total exports stood at US$62.31 billion, a 21.15 percent increase over the same period last year.

Non-oil and gas exports during the January-September period, which account for almost 78 percent of Indonesia's total income from international trade, rose 21.04 percent to $48.35 billion as compared to last year's figure.

Sales of oil and gas, meanwhile, rose 21.56 percent in the same period to $13.9 billion. However, during September alone, exports of these commodities dropped by 4.58 percent as compared to August's figure of $1.79 billion.

During the first nine months of the year, exports of electronic goods rose to $5.2 billion from $4.8 billion, while sales of mechanical goods rose to $3.1 billion from $2.7 billion in 2004.

Indonesia's exports hit a record high last year, reaching $69.71 billion, up 11.49 percent from 2003. This was mainly attributable to strong sales of non-oil and gas commodities and goods, including palm oil, electronic goods, clothing, coal and tin.

However, the Ministry of Trade's research and development agency warned that this year, as statistical calculation had shifted to the on-line method, the increase should be lower, at around 13 percent to 14 percent.

Trade minister Mari Elka Pangestu had said previously that Indonesia would focus the development of its exports on electronics, as well as footwear, textiles and textile products.

Combined, the three industries contributed $16.33 billion to the country's exports last year. As of June, exports from the three sectors stood at $7.16 billion.

Currently, a special team from the trade ministry is formulating incentives for the development of the three sectors.

The mineral fuels sector, which includes coal, also showed impressive growth from $1.95 billion in 2004 to $3.12 billion this year.

Global demand for coal has increased as countries around the world seek alternative energy sources, partly due to soaring oil prices.

The country's trade balance recorded a surplus of $18.56 billion for the first nine months of the year, with imports coming in at $43.75 billion.

Imports in September dropped to $4.89 billion, 9.3 percent lower than the $5.4 billion recorded in June.