January export raises optimism over RI's growth

Rendi A. Witular, The Jakarta Post, Jakarta

A rise in non-oil and gas exports drove the overall export figure in January slightly higher by 0.74 percent compared to the same period last year, raising hopes that export could help accelerate economic growth to 4.8 percent this year.

The Central Statistics Agency (BPS) reported on Monday that export during January stood at US$5.03 billion against the $4.99 billion posted in January 2003, due to a 0.99 percent rise in non-oil and gas export to $3.83 billion.

"At the start of 2004, Indonesia's export in January once again surpassed the $5 billion figure," the agency said.

Indonesia, Southeast Asia's largest economy, is counting on exports and consumer spending to achieve its 4.8 percent growth target this year, as investment remains in the doldrums.

Last year, net exports contributed slightly above 20 percent of the 4.1 percent growth, as various problems at home and the weak global economy hampered export performance.

The government has estimated non-oil and gas export this year to grow by 7 percent from $47.38 billion in 2003 to $50.7 billion on the backs of expected recovery in the global economy and rising demand from China's fast-expanding economy.

Elsewhere, the agency said that wood and wood-based products topped the list of the major non-oil and gas export commodities in January, followed by animal and vegetable fats and oil, then paper and cardboard.

Export of wood and wood-based products increased to $299 million in January, from $265 million in the same period last year, while animal and vegetable fats and oils rose to $247 million from $244 million, and paper and cardboard to $213 million from $166 million.

Other top non-oil and gas export commodities include footwear, which surged to $136 million from $96.7 million, and synthetic filament, which rose to $95.5 million from $94.1 million.

"Japan was Indonesia's largest export destination in January with a non-oil and gas export value of $594 million," the BPS said, adding that the United States and Singapore were the second and third largest export destinations, respectively.

As for oil and gas exports, the country recorded $1.19 billion throughout January, down slightly by 0.03 percent from last year, mostly due to a 27 percent drop in the oil export volume.

The BPS said imports in January increased slightly by 0.24 percent to $2.75 billion, but was 2.76 percent lower compared to December's figure.

Import figures can be an indicator of investment activities, as the country's production sector is heavily dependent on imported raw materials.

Meanwhile, the trade surplus in January was slightly higher at $2.28 billion, against $2.26 billion in the same month of 2003.