Inflation rate surged to 77.63 percent last year
Inflation rate surged to 77.63 percent last year
JAKARTA (JP): Indonesia recorded an inflation rate of 1.42
percent in December from 0.08 percent in November, sending the
1998 full-year inflation rate to 77.63 percent, the Central
Bureau of Statistics (BPS) announced Thursday.
The inflation rate in 1998 was still lower than the 80 percent
targeted by the government but it was far higher than the 11.05
percent recorded in 1997.
BPS chief Sugito Suwito said the increase in prices was
particularly significant during the last two weeks of the month
as household demands soared in anticipation of the Ramadhan
fasting month, Christmas and New Year celebrations.
"The major contributors to inflation were increases in food
and clothing prices," he said.
Sugito said the December inflation was still lower than the
2.04 percent level in December 1997.
Inflation for the nine months of the 1998/1999 fiscal year
starting from April was 39.74 percent.
Exports in October totaled US$3.78 billion which was lower
than $4.01 billion in September, sending the January to October
export revenue to $41.03 billion, a 6.9 percent decline from the
same period in 1997.
This decline was caused by lower international prices for the
country's major export commodities including oil.
Sugito estimated total export revenue in 1998 would reach
$50.05 billion, a 6.34 percent decline from 1997, comprising
$7.73 billion in oil and gas exports and $42.32 billion from non-
oil and gas exports.
Imports in October reached $2.40 billion, up from $2.23
billion in September, sending the January-October cumulative
figure to $22.59 billion, a 36 percent decline from the level in
the same period in 1997.
The agency estimated imports for the full year 1998 at $27.43
billion, a 34.2 percent decline from the level in 1997.
Sugito that Indonesia's gross domestic product (GDP) for 1998
(based on the 1993 constant prices) dropped to Rp 374.7 trillion
from Rp 434.1 trillion in 1997.
"The economy will have shrunk by an estimated 13.68 percent,"
he said. This is close to the IMF estimate of 13.80 percent.
The 1998 per capita GDP based on 1993 constant price declined
to Rp 1.8 million from Rp 2.2 million in 1997, Sugito said.
BPS said that almost all sectors of the economy suffered a
negative growth in 1998, except the agriculture, electricity, gas
and drinking water sectors.
Sugito forecast that GDP in 1999 could grow by between 1.5 and
2 percent if the political activity during the year does not
disrupt the production system.
"The political agenda in 1999 is heart-pounding. There's a
general election and a presidential election," he said, adding
that if these activities disrupted the production system, the
economy could shrink by 2 percent.
He added, however, that developments during the past three
months were encouraging as the rupiah managed to stabilize
despite widespread riots and demonstrations.
"If this kind of phenomenon can be maintained next year,
inflation may reach 15 percent, but otherwise it may go up to 20
percent," he said. (rei)