Exports up in first five months of year: BPS

The Jakarta Post, Jakarta

A surge in demand for industrial products and high global metal prices caused exports in the first five months of the year to jump 30.79 percent from the same period last year, according to the Central Statistics Agency (BPS).

In announcing the results of its latest report on Friday, the BPS said exports from January to May reached US$33.88 billion, with non-oil and gas exports rising 34 percent to $26.56 billion from the corresponding period in 2004. That sector accounts for more than three-fourths of the total revenue from the country's international trade.

Sales of oil and gas rose 20.28 percent in the period to $7.313 billion, the report said.

The overall good performance of the country's exports could indicate record-high exports this year. "Export figures may rise even further," said BPS chief Choiril Maksum. "They may reach some $70 billion by the end of the year."

Indonesia's exports grew to an historic high of $69.71 billion last year, up 11.49 percent from 2003, boosted by strong sales of the non-oil and gas commodities of palm oil, electronics, clothing, coal and tin.

The trend has continued this year, with exports from the industrial sector, which account for 66 percent of total exports, expanding by 27.64 percent to $22.5 billion between January and May.

The ores, slag and ash group claimed the highest increase in the first five months of the year, as their exports more than doubled to $1.28 billion from the same period in 2004.

The mineral fuels group, which includes coal, also showed impressive growth of 70 percent, increasing its exports value to $1.52 billion.

The country's trade balance stood at a surplus of $10.3 billion in the first five months of the year, with imports registered at $23.57 billion.

Year-on-year, the $7.21 billion in exports in May was a 31.16 percent increase from May last year. Imports were recorded at $4.96 billion for the month, 54 percent higher than the $3.22 billion in the same period in 2004.

The May trade surplus stood at $2.25 billion.

However, the upward trend in exports, which boosted the trade surplus, has not translated into a stronger rupiah, which has been on a weaker footing against the greenback since the start of the year.

Analysts have said, as confirmed by the central bank, that large chunks of the export proceeds have never made their way into the country's foreign exchange reserves -- which could have helped bolster the rupiah -- instead remaining stashed abroad, intended by exporters to ensure a quick flow of transactions.

The rupiah was down for the fifth straight session on Friday, closing at Rp 9,770 against the dollar from Rp 9,758 on Thursday.