RI books record high exports in 2004: Statistics Agency

Zakki P. Hakim, The Jakarta Post, Jakarta

Indonesia's exports last year reached an historic high of US$69.71 billion, or up 11.49 percent from the year before, boosted by strong sales of non oil and gas commodities including palm oil, electronics, clothing, coal and tin.

In its latest monthly report, the Central Statistics Agency (BPS) said on Tuesday that non oil and gas commodities last year expanded by almost 11 percent from 2003, valued at record high of $54.13 billion, and making up about 78 percent of national exports.

The figure far exceeded the government's $50.73 billion target.

"Last year's exports of non oil and gas commodities reached the highest level in Indonesian history. Strong global demand in crude palm oil must have played a role in that," BPS' export statistic subdirectorate head Dantes Simbolon told The Jakarta Post.

Dantes went on to say that robust global demand came mostly from China and India, two of the world's fastest growing economies.

In the report, palm oil is grouped in the category of animal and vegetable fats and oils, which last year grew by 25.48 percent to $4.24 million.

Animal and vegetable fats and oils category was the second largest contributor to non oil and gas exports, after electrical machinery and tools, which includes electronic goods.

After Malaysia, Indonesia is the world's second largest palm oil exporter, which is used to make cooking oil, soap and detergent.

The two countries together contribute a combined 88 percent of this year's global palm oil exports.

Sector-wise, exports from manufacturing and mining expanded by 12.02 percent and 9.18 percent respectively, while agriculture experienced negative growth of 6.48 percent.

Japan, the United States, Singapore and China collectively accounted for 42.52 percent of Indonesia's total non oil and gas exports last year.

As for oil and gas exports, the country recorded a 14.18 percent increase from last year to $15.59 billion.

Imports jumped by almost 40 percent this year to $46.18 billion, with oil and gas imports surging by 52.36 percent to $11.63 billion, while non oil and gas imports soared by 35.74 percent to $34.55 billion.

"Imports have now exceeded the level of 1997 of some $43 million," Dantes said.

With oil prices running sky-high in the global market, the increase in oil and gas imports comes as little surprise.

Meanwhile, a rapid increase in non oil and gas imports indicates a rising trend in demand by local industry for capital goods.

The Ministry of Trade says that the business climate has been improving with businessmen having the confidence to purchase machinery and other capital goods, as well as raw materials, to expand their production capacity here.

Tuesday's report showed that last year's imports of raw and supporting materials and capital goods jumped by 40.37 percent and 41.29 percent respectively from the same period in 2003. (003)