Merrill Lynch upbeat about Indonesia's economy
Merrill Lynch upbeat about Indonesia's economy
JAKARTA (JP): The outlook for the Indonesian economy remains
promising in the fourth quarter despite the fall in the country's
exports during the first five months of this year, according to
Merrill Lynch, a noted multinational securities company.
In its latest Asian Economic Commentary, Merrill Lynch said
that Indonesia's exports have shown signs of recovery after
suffering a decline in the January-May period.
Non-oil exports grew by eight percent in the March-April
period, as compared with a 1.5 percent drop during the October-
February period, it said, adding that total exports fell by about
one percent during the first five months of 1994, while imports
rose by almost 10 percent.
"In turn, this has led to a drop on the trade surplus by
almost one quarter from the same period a year ago," it said.
Prospects for non-oil exports should continue to grow, Merrill
Lynch said.
"The surge in investment approvals so far this year -- which
could be further bolstered by the June deregulation package -- is
likely to lead to a deepening and widening of the industrial base
over time," it said, adding that in return, a growth in
production capacities in non-oil exports should be seen.
Merrill Lynch forecasts that Indonesia's non-oil exports are
likely to rise 12 percent to 14 percent in 1994-1995.
According to official data, Indonesia's total exports rose by
16 percent to $28.88 billion in 1993-1994 from $24.28 billion in
1992-93. The government projects that the exports will increase
to around $33.58 billion in the current 1994-1995 fiscal year,
which began in April.
Non-oil exports contributed around 75 percent to the country's
total export earnings last fiscal year.
Coordinating Minister for Industry and Trade Hartarto said
recently that non-oil exports reached $2.7 billion in June, an
increase of 14.9 percent from the same period of last year.
Around 70 percent of Indonesia's non-oil exports have been
destined to Japan, Taiwan, the United States, Singapore, South
Korea and Australia. (hen)