Indonesia's 11-month trade surplus dips 28 percent on surging imports
Indonesia's 11-month trade surplus dips 28 percent on surging imports
Zakki P. Hakim, The Jakarta Post, Jakarta
Indonesia's trade surplus dropped by almost a third in the first
11 months last year compared to its 2003 performance as imports
soared due to increasing oil prices, the Central Statistics
Agency (BPS) announced on Monday.
The country posted a trade surplus in the January to November
period of US$21.22 billion, with exports rising by nearly 10
percent year-on-year to $62.75 billion and imports surging by 40
percent to $41.53 billion, the agency said in a press conference.
The surging imports mainly came as crude oil imports increased
by $1.60 billion or 43.30 percent and imports of oil products
soared by $1.74 billion or 52.52 percent from the year before, it
said.
Nevertheless, the Ministry of Trade said last week that it was
upbeat about the increasing export trend and said that the high
imports were a consequence of a higher demand for capital goods.
The ministry said the economic climate was improving with
businessmen now confident about bringing in machinery and other
capital goods, as well as raw materials, to expand their
businesses in the country.
In Monday's conference, the agency echoed the ministry's
optimism, reporting that for the first 11 months of the year
imports of raw materials and capital goods jumped by 40.15
percent and 44.21 percent respectively compared to the same
period in 2003.
Meanwhile, imports of goods for consumption also grew by 32.48
percent.
Moreover, looking at the non-oil and gas exports, which until
November had reached $48.50 billion with average monthly exports
of $4 billion, the Ministry of Trade looked certain to achieve
its $50.73 billion target.
Minister of Trade Mari E. Pangestu said in her year-end press
conference that she was optimistic the target would be exceeded
thus booking a 10-year record high.
The ministry maintained the previous government's target
growth of 7 percent for non-oil and gas exports from last year's
$47.41 billion.
Therefore, even as the agency reported that November exports
fell 23.12 percent to $5.17 billion compared to the month before,
a similar performance in December would be more than enough for
the government to secure its target.
It attributed the falling exports in November to reduced
activities in ports during the fasting month and the Idul Fitri
holiday, thus cutting effective working days.
The same reasoning would also explain why imports dropped by
14.03 percent to $3.71 billion, it said.
Japan, the United States, Singapore and China accounted for
41.88 percent of Indonesia's total exports in November.