Inflation quite high: Hartono

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)