March exports strike record high

March exports strike record high

JAKARTA (JP): Indonesia's monthly export earnings reached a
record high level in March due to the sharp increase in the
volume of non-oil and gas exports, the Central Bureau of
Statistics (BPS) announced on Monday.

BPS chief Sugito Suwito said the country's monthly export
earnings rose by 3.67 percent to US$4.94 billion in March, the
highest level ever achieved by the country.

Non-oil and gas exports for March increased by 4.5 percent to
$3.83 billion from $3.67 billion in February, while non-oil
imports increased 1.2 percent to $1.77 billion from $1.75
billion.

March's foreign exchange earnings from oil and gas exports
increased slightly to $1.10 billion, from $1.09 billion in
February. Oil imports also increased to $473 million from $362
million.

"Although the volume of oil and gas export products decreased
(in March), the country booked higher revenues during the month
because oil and gas market prices increased," Sugito said.

The strength of international oil and gas prices in the last
six months has benefited the country's income from this sector.

The bureau said the country's trade surplus widened to $2.69
billion in March from $2.53 billion in February.

Total export value in the January-March period increased by
38.7 percent to US$14.1 billion compared to levels in the same
period last year.

The bureau said that in the first three months of the year,
oil and gas exports increased 79 percent to $3.35 billion from
$1.87 billion in the same period the previous year. Oil and gas
imports increased 80 percent to $1.26 billion from $700 million
in the first quarter of last year.

Non-oil and gas exports in the first quarter increased 29.62
percent to $10.75 billion from $8.29 billion a year earlier. Non-
oil and gas imports increased 8.4 percent to $5.27 billion from
$4.86 billion in the first quarter last year.

Sugito said there were significant increases in the amount of
imported raw materials and capital goods, while imports of
consumer goods decreased during the first two months of the year.

"The increase in supporting raw materials and capital goods
are signs that manufacturing activities are running again and
people are perceiving a projected economic growth," he said.

"This is a positive development. We should expect to see
increasing exports in the near term," he added.

The imported capital goods, Sugito said, were sea transport
equipment, steel pipes and electrical equipment.

The monthly inflation rate in April increased by 0.56 percent
compared to the previous month due to an increase in electricity
rates, civil servants' salaries and the price of cigarettes.

The government raised civil servants' salaries, the minimum
wage and electricity rates in early April.

Sugito said the year-on-year inflation rate was 0.15 percent.

He said the April inflation rate would have been higher had
the government banned rice imports, implemented price increases
in all gasoline grades and raised public transit fares.

The government recently raised the price of unleaded gasolines
Super TT and Premix, while delaying an increase to the commonly
used Premium gasoline.

"This year's inflation rate could reach a range between 7
percent and 8 percent if these fiscal measures (fuel and public
transport fare hikes) are taken by the government by June," he
said.

According to the bureau, all the consumer price indexes had
increased in April except for food prices which fell by 0.46
percent.(udi)