Inflation rate 1.05% in February

JAKARTA (JP): Indonesia recorded a trade surplus of US$6.94 billion last year and a 1.05 percent inflation rate for February, Minister of Information Harmoko said yesterday.

Harmoko said after the monthly limited cabinet meeting on economic affairs that the 1.05 percent rise in last month's consumer price index was slightly higher than the 1.03 percent posted in January.

"But the inflation rate last month was the lowest level for February in five years," he said.

Though inflation was under control, President Soeharto again said the distribution of goods had to be improved, Harmoko said.

He said last year's $6.94 billion trade surplus was built on total exports of $49.81 billion against imports of only $42.86 billion.

Last December alone, exports amounted to $4.68 billion, of which $1.22 billion came from oil and natural gas. Imports in the same month totaled $3.76 billion.

The meeting, which was chaired by the President, discussed other economic issues, including the latest monetary developments, supplies of fertilizer, cement and other basic commodities, tourist arrivals and the export of workers.

Tourist arrivals through Indonesia's seven main gateways in January totaled 302,490 who spent $370.22 million.

"Based on this figure, we are optimistic about achieving the target of 5.3 million tourists this year," Harmoko said.

The Minister of Manpower, Minister Abdul Latief, said there were 1.95 million Indonesians employed overseas as of early this year with an average monthly wage of $300.

"We will, however, stop sending domestic maids overseas beginning in 1998 and will export more skilled workers like nurses, construction and electronic workers," Harmoko said.

Based on Latief's reports, Indonesian workers overseas will earn an average $500 a month by 2000, rising to $750 a month in 2003. (vin)

Indonesian trade balance (US$ million)

1996 1995 -------------------------------------- Trade balance +6,946.3 +4,789.4 Exports 49,815.5 45,418.1

Oil and Gas 11,721 10,471

Non-oil 38,094.5 34,947.1 Imports 42,869.2 40,628.7

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