March inflation up, exports down
March inflation up, exports down
JAKARTA (JP): Inflation in March rose 0.89 percent following a
0.87 percent increase in February, as the government's
announcement that it would raise fuel prices beginning this month
propelled consumer price indexes in all categories, the Central
Bureau of Statistics (BPS) said on Monday.
BPS deputy Kusmadi Saleh said the March inflation rate was
expected to drop because holidays in the previous months had been
pressuring the consumer price index.
"March's high inflation rate was unexpected ... it should have
dropped, but it didn't," Kusmadi said in a monthly press
briefing.
He said the surprising jump in inflation in March was likely
to propel this year's inflation rate beyond the government's
target of between 7 percent and 9 percent.
Since January, inflation has hit 2.11 percent, the BPS monthly
report said. The year-on-year rate now stands at 10.62 percent.
All consumption categories recorded increases in their price
indexes in March, BPS said.
The biggest contributors to March's inflation were the housing
price index with a 0.28 percent increase, followed by beverages,
cigarettes and tobacco at 0.22 percent and raw food at 0.2
percent.
Kusmadi blamed March's high inflation rate on the government's
announcement during the month that it would raise fuel prices by
an average of 20 percent beginning in April.
He said that even though the government postponed the fuel
price hike for the public, the announcement was enough to
increase consumer prices indexes.
The government delayed the fuel price hike for the public
until October, though it went ahead with the fuel price increase
for industries.
Kusmadi warned that the decision to impose higher fuel prices
on industries could push inflation 0.5 percent to 1 percent above
the government's target.
BPS said earlier it expected an impact of only 0.4 percent to
0.8 percent on inflation, assuming an average 20 percent increase
in fuel prices in April.
But the government imposed higher fuel prices on industries
than originally planned. Beginning in April, industries must
purchase fuel at prices that are 50 percent higher than prices on
the international market. This pricing scheme sends fuel prices
for industries soaring by an average of 108 percent.
"We must wait until April passes before we can get a clearer
picture of the impact of the higher fuel prices," Kusmadi added.
Exports
Meanwhile, exports continued to weaken, dropping to US$4.72
billion in February from $4.84 billion the previous month,
according to the BPS report.
"Since September 2000, monthly exports have been steadily
falling," the report said.
It said Indonesia's export earnings in February fell 2.42
percent from January, and oil and gas exports decreased 16.75
percent.
The bureau attributed a seasonal drop in oil and gas demand
for the lower export revenue of $1.11 billion, compared to $1.34
billion the previous month.
"On the other hand, non-oil and gas exports rose by 3.06
percent in February," BPS said. Non-oil and gas exports grew to
$3.61 billion in February from $3.50 billion the previous month.
Despite an economic slowdown in the United States, non-oil and
gas exports to that market rose by $87.7 million. This was
followed by China with a $33.6 million increase and Germany with
$12.5 million.
Non-oil and gas exports to the U.S., Germany and China in
February totaled $633.5 million, $116.1 million and $129.3
million, respectively.
Non-oil and gas exports to Singapore in February recorded the
biggest drop, falling by $96.4 million to $386.7 million.
Imports for February dropped slightly by 0.18 percent to $3.02
billion, from $3.03 billion the previous month. This continues
the three-month trend of falling imports, mainly due to the
stronger U.S. dollar.
The rupiah has been falling since May last year, when it broke
the 8,500 level against the greenback, but imports remained
strong until December last year.
Indonesia's trade surplus in February fell to $1.70 billion
from $1.81 billion the previous month. (bkm)