Govt reports export rise, higher inflation rate

Govt reports export rise, higher inflation rate

JAKARTA (JP): The government yesterday announced a 4.5 percent increase in Indonesia's exports to US$3.94 billion in August, up from $3.77 billion in July.

However, a higher rate of growth in the country's imports caused a decline in its trade surplus to $148.5 million in August, as compared with $362.5 million in the previous month.

Minister of Information Harmoko told reporters after a limited cabinet meeting on the economy at the Bina Graha presidential office yesterday that the country's imports rose 11.1 percent to $3.79 billion in August from $3.41 billion in July.

He said August's export revenues came from non-oil exports of $3.7 billion and oil and gas exports of $862 million.

During the January-August period, Indonesia's total exports reached $28.96 billion, while its imports were recorded at $26.52 billion, so that the country enjoyed a trade surplus of $2.43 billion.

According to Harmoko, the country's exports of textiles and textile products during the first seven months of this year increased by 1.4 percent to $3.3 billion over the same period of last year, while exports of pulp and paper rose by 116.5 percent to $705 million, leather goods by 11.5 percent to $1.3 billion, rubber products by 91 percent to $1.3 billion, electronics by 27 percent to $1.3 billion and steel products by 28 percent to $900 million.

Exports of palm oil rose 20.9 percent to $833.6 million and metals 52 percent to $336 million. However, exports of wood products fell by 6.26 percent to $3.1 billion and food and beverages by 8.7 percent to $363 million.

Minister Harmoko said the country's inflation rate for the month of October was 0.64 percent, higher than the 0.38 percent recorded in August but lower than the 0.89 percent in October 1994.

Last month's inflation rate was caused by the increase of food prices by an average of 0.55 percent, housing costs by 0.32 percent, clothing prices by 0.59 percent and other goods and services by 1.19 percent, Harmoko said.

The October inflation brought the country's cumulative inflation rate during the January-October period to 7.43 percent, as compared with 8.27 percent recorded in the corresponding period of 1994.

The money supply was recorded at Rp 48.98 trillion (US$21.4 billion) as of the end of September, as compared with Rp 48.38 trillion as of the end of August.

The minister said the meeting, which was presided over by President Soeharto, also discussed a projection that Indonesia's rice production is likely to increase by 3.89 percent to 48.45 million tons this year, while its output of corn may rise 14.1 percent to 7.8 million tons and soybean 4.89 percent to 1.6 million tons. (riz)