Inflation quite high: Hartono

JAKARTA (JP): Indonesia recorded a 1.99 percent inflation rate in October, the highest month-on-month increase in the last 10 years, Minister of Information R. Hartono announced here yesterday.

"The inflation rate from January to October this year was 7.36 percent, compared to only 5.35 percent for the same period in 1996... This year's inflation rate is quite high," Hartono said after a limited monthly cabinet meeting on economic affairs and the poverty alleviation program at Bina Graha presidential office.

In October, food prices increased 3.61 percent, housing prices rose 1.18 percent, clothing rose 2.35 percent and services rose 0.65 percent.

Inflation for the 1997/1998 fiscal year, from April to October, was 5.4 percent compared to only 2.09 percent for the same period last year, Hartono said.

He said Indonesia booked a trade surplus of US$1.45 billion in August, 64 percent higher than in August last year.

"Our exports in August were worth $4.7 billion, comprising $851.05 million of oil and natural gas exports and $3.86 billion of non-oil exports," Hartono said.

Imports totaled $3.26 billion, comprising $216.26 million in the oil and natural gas sectors, while non-oil and gas goods totaled $3.04 billion.

The minister said for the January to August period, exports amounted to $34.8 billion, comprising $7.74 billion from the oil and gas sector, while non-oil and gas products contributed $27 billion.

"Compared to last year's figure, exports increased 9.2 percent and totaled $31.87 billion," said Hartono. He did not elaborate on the value of imports.

"The country's foreign exchange reserves exceeded $19 billion or enough for five-month imports and we also have standby reserves worth $2 billion," Hartono added. (prb)