Exports up in first semester: BPS says

The Jakarta Post, Jakarta

Despite a slight drop in exports in June, Indonesia's exports over the first six months of the year were still up on strong global demand for the country's mining, industrial and agricultural products, the Central Statistics Agency (BPS) reported on Monday.

Indonesia's exports fell 6.36 percent to US$6.73 billion in June, but reached $40.58 billion from January to June, a 27.48 percent increase from the same period in 2004.

Non-oil and gas exports, which account for more than three- quarters of Indonesia's total revenue from international trade, rose 30.15 percent to $31.76 billion in the first half of the year from the corresponding period in 2004.

Sales of oil and gas, meanwhile, rose 18.71 percent in the same period to $8.82 billion.

According to BPS chief Choiril Maksum, the June export decline was caused by a more than twofold drop in the country's animal fat and vegetable oil exports from May.

"One of Indonesia's main export commodities, palm oil, however, continued to show a strong performance," he said, adding that an increase in exports of the ores, slag and ash group also helped offset the decline.

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

This trend is likely to continue this year with exports from the industrial sector, accounting for 65.8 percent of total exports, expanding by 23.38 percent to $26.7 billion in the first half of the year.

The ores, slag and ash group recorded the highest increase in this year's first semester, with exports more than doubling to $1.55 billion from the same period in 2004.

The mineral fuels group, which includes coal, also showed impressive growth of 80 percent, increasing its exports value to $2.03 billion.

The country's trade balance stood at a surplus of $12.21 billion in the first six months of the year, with imports reaching $28.37 billion in the same period.

The June trade surplus stood at $2.01 billion.

Imports were at $4.71 billion in June, 5.01 percent lower than the $4.96 billion recorded in May.