Import increases 16.06%: BPS

Import increases 16.06%: BPS

Tony Hotland, The Jakarta Post, Jakarta

Imports in July escalated by 16.06 percent to US$4.11 billion
from $3.54 billion in the previous month, with non-oil and gas
imports at the highest since the economic crisis in 1997, the
Central Statistics Agency (BPS) reported on Wednesday.

BPS said that imports increased at a much higher rate of 33.34
percent from $18.63 billion in the same month of last year.

The agency said non-oil and gas imports were up 14.03 percent
to $3.1 billion, while oil and gas imports were up 22.78 percent
to $1.01 billion.

Non-oil and gas imports peaked in July with all of the 10
major imported goods showing enormous increases.

The increases were primarily driven by imports of chemical
organic substances, vehicles and spare parts, machines and
electrical equipment, and iron and steel products.

Japan was the main source of imports, with imports valued at
$544.9 million, followed by China at $325.4 million, and
Singapore at $302.9 million.

BPS chief Choiril Maksum said that the increase in imports
could be seen as a positive sign for the economic outlook in the
next three months as it most likely meant that industries using
the imported materials would show robust performance.

"However, it must be observed that China was the second source
of imports in July. As we know, goods imported from China are
mostly for consumption instead of raw materials or capital goods,
and it's not good for our economy," he said.

Imports of oil and gas in July also pushed higher due to the
soaring global oil prices, which recorded a historic record high
at $49 per barrel a couple of weeks ago. Besides being an oil
exporting country, Indonesia is also an oil importer.

Total imports during the first seven months of the year rose
by 33.34 percent to $24.84 billion, as against $18.63 billion
during the same period last year.

Raw materials account for 80.95 percent of total imports,
while capital goods for 10.96 percent and consumption goods for
8.09 percent.

BPS said that exports in July fell slightly by 0.31 percent to
US$5.68 billion from the previous month due to a drop in the
export of crude oil, oil-based products and gas.

But BPS said that compared to the same month last year,
exports increased by 7.68 percent.

As imports grew stronger than exports, the country's trade
surplus during the month fell to $1.57 billion from 2.15 billion
in June.

BPS said that non-oil and gas exports went up 2.4 percent from
$4.34 billion in June to $4.44 billion, led by exports of
machines and electrical equipments, non-knitted clothing,
artificial filament, as well as plastics and plastic-based
products.

The main export destinations were Japan, the United States,
Singapore, and China, the four of which accounted for 44.12
percent of the total exports in July.

Total exports from January to July reached $37.11 billion, or
up 3.88 percent compared to the same period last year, with Japan
being the number one destination for non-oil and gas products,
followed by the U.S. and Singapore.

Exports of industrial products during the period rose by 3.32
percent, while exports of agriculture and mining products slipped
by 2.05 percent and 2.17 percent respectively.