First trade surplus with Australia
JAKARTA (JP): Indonesia booked a surplus of A$1.41 billion (about US$950 million) in bilateral trade with Australia in 1998, partly due to a sharp increase in exports to the neighboring country.
The surplus is the first recorded by Indonesia in the last five years.
According to data released by the Australian Embassy here on Wednesday, Indonesia's exports surged 57.2 percent to A$3.56 billion last year while imports dropped by 37 percent to $2.15 billion.
The embassy's economic counselor, Tony Urbanski, said the drop in imports was caused by difficulties faced by local importers in securing credit to finance their imports.
Urbanski noted the bilateral trade between both countries remained relatively stable at A$5.71 billion in value last year despite the crisis, compared with A$5.65 billion in 1997.
Indonesia's exports of jewelry showed the highest growth last year, as many Indonesians sold their gold to benefit from the increase in gold prices in the local market.
The price of gold (in rupiah) surged more than 300 percent last year due to the plunge in the rupiah's value against the U.S. dollar.
According to embassy data, jewelry exports from Indonesia to Australia increased 920 percent to A$471.79 million in 1998.
Gold products, excluding gold ore and concentrate, made a record increase, rising by 530 percent to A$604.6 million last year, as against A$95.97 million in the previous year.
Petroleum products and related materials, which are the country's top export commodities to Australia, reached A$1.22 billion last year, a 9.55 percent increase from $1.11 in the previous year.
Indonesia also exports paper products, textile yarn, furniture, wood products, electrical equipment, non-metallic minerals and apparel and clothing accessories.
Indonesia imports from Australia commodities including "confidential items of trade", textile fibers, non-ferrous metals, petroleum products, machinery, metals, dairy products and bird eggs, iron and steel and electrical machinery.
The "confidential items of trade", which is the largest import from Australia, dropped by 16 percent to A$696.39 million last year.
The embassy did not specify what was meant by the "confidential items of trade" category. But some sources said they may include items like arms or uranium.
Indonesia's imports of textile fibers from Australia -- the second largest commodity imported from the country last year -- dropped by 15 percent to A$474.8 million last year.
Embassy trade commissioner Jennie Lloyd said most Australian businessmen still have confidence in Indonesia's economic future, citing that "very, very few" Australian companies left the country amid the economic and political turmoil.
Some new investors are seeking opportunities to invest in the country and some others have expanded despite the economic and political turmoil, she added.
"Overall, (Australian) people maintain operations, maintain relationships and are still very optimistic about the prospect in Indonesia in the medium term," Lloyd said.
According to Lloyd, more than 400 Australian companies, including small and medium-size companies, are operating in the country in various business sectors, including mining, food products, telecommunications, transportation. (jsk)