Non-oil exports fall for the first time
Non-oil exports fall for the first time
JAKARTA (JP): For the first time in ten years Indonesia's non-
oil exports have declined, raising concerns in a cabinet meeting
on economy at the Bina Graha presidential office here yesterday.
"President Soeharto ordered related ministers to study the
causes of the decline in non-oil exports in January and learn why
the changes in demand were taking place." Minister of Information
Harmoko made this announcement after a limited cabinet meeting on
economy.
Harmoko said that Indonesia's export of non-oil products fell
by 11.7 percent to US$1.89 billion in January from $2.14 billion
in the same month of 1993, while export of oil and gas declined
by 10.9 percent to $763 million from $856.31 million.
Indonesia, however, enjoyed a trade surplus of $597.2 million
in January despite of the export decline, he said.
The January imports fell by 3.9 percent to $2.05 billion from
$2.14 billion in the same month last year.
The country's exports have already fallen by 4.9 percent to
$3.19 billion last December from a year before due to a sharp
decline in oil prices on the world market.
"The government will soon take concrete measures to boost the
country's non-oil exports," Harmoko said.
The government, realizing that oil prices had fallen steadily
since the early 1980s, has taken several steps. This has included
the rupiah devaluations in 1983 and 1986 and the reduction of
barriers for imports of raw materials to promote non-oil exports.
Harmoko said the President, who is also chairman of the Non-
Aligned Movement (NAM), instructed Minister of Trade Satrio
Budiardjo Joedono to appoint a team to coordinate trade
cooperation among developing countries, which may also help
increase Indonesia's exports.
Inflation
Harmoko said that the cabinet meeting also dealt with
inflation, which fell to 0.7 percent last month from 1.76 percent
in February and 1.25 percent in January.
"The inflation of 3.71 percent in the first three months of
this year is far lower than 6.44 percent in the same period of
last year," he said.
According to the government, the high inflation rate in the
first quarter of last year was caused by increases in fuel
prices, electricity billing rates and transportation fares, while
the high rate in the January-March period was caused mainly by
floods and increasing demand for goods prior to last month's Idul
Fitri holiday.
The government, under its State Policy Guidelines, is
committed to keeping the rate of inflation to a maximum of five
percent per annum.
The information minister said that last month's inflation was
caused by increases of food prices in the capitals of the
country's 27 provinces by an average of 1.6 percent. Clothing
prices also rose by 1.41 percent. The prices of housing increased
by only 0.07 percent and other goods and services by 0.04
percent.
Even though food prices rose by an average of 1.6 percent, the
prices of rice fell by an average of 2.44 percent to Rp 609.29
(28.4 U.S. cents) per kilo last month from Rp 624.58 in February
due to the start of the harvest season in the country, he said.
He said the money supply increased by 8.9 percent to Rp 40.35
trillion as of January from Rp 37.03 trillion as of last
December.
Harmoko said the meeting also discussed the damages of rice
and secondary crops caused by floods in Java, Sumatra, Sulawesi
and West Nusa Tenggara.
"The President wants a delay for the repayment of credits by
farmers whose crops have been damaged by floods," he said.(riz)