Inflation rate in May falls to 0.06 percent

JAKARTA (JP): The country's inflation rate fell to 0.06 percent in May from 0.78 percent the previous month, Information Minister Harmoko announced yesterday.

He told reporters after a limited cabinet meeting on economy at Bina Graha presidential office that the May inflation rate was also lower than the 0.49 percent recoded in the same month of 1995.

The May inflation rate brought the cumulative consumer price index during the first five months of this year to 4.1 percent, lower than the 5.22 percent of the same period last year.

"President Soeharto ordered related ministers and other government officials to continue curbing the inflation by improving coordination in the production and distribution of goods," Harmoko said.

The minister said the low inflation rate in May was contributed to by a 0.56 percent decline in the prices of food, while the cost of housing rose 0.38 percent, clothing by 0.57 percent and other goods and services rose by 0.48 percent.

Meanwhile, money supplies were recorded at Rp 53.16 trillion (US$22.6 billion) as of April 1996, the minister said.

He noted that the supplies of strategic goods such as cement and fertilizers adequately met demand. Cement is usually sold out during the dry season, beginning in May, when construction activities increase, while fertilizers have just experienced supply crises in a number of areas.

To meet the increasing demand for cement, the government has encouraged the private sector to invest in the cement industry and the existing firms to expand their capacity.

Harmoko said currently there are 32 cement expansion as well as new projects, 15 of which are under construction with a combined capacity of 28.2 million tons of cement per annum and combined investment of Rp 6.8 trillion.

Speaking on international trade, the minister reported that Indonesia enjoyed a surplus of US$477.5 million for March, with exports of $3.95 billion -- including $986 million from the oil and gas sector -- and imports of $3.47 billion -- including $307.8 million from oil and gas.

As for the period of April 1995 to March 1996, Indonesia's trade surplus stood at $5.27 billion, with exports of $46.48 billion and imports of $41.21 billion.

Meanwhile, Indonesia's foreign exchange revenues from the tourism sector between January and April this year totaled $1.6 billion, up by 19.5 percent over the same period of last year.

Of the total tourism earnings, 64.4 percent came from foreign tourists coming here for holidays, 23.43 percent from business visits and the other 12.13 percent from other-purpose visits.

To woo more foreign tourists here, the minister said, President Soeharto will inaugurate a tourism estate in Bintan island, Riau, on June 18. (rid)