RI suffers trade deficit
RI suffers trade deficit
JAKARTA (JP): Indonesia's trade in June ran a deficit for the
first time in several years due to increasing imports of
machinery and auxiliary materials for industrial production,
Minister of Information Harmoko announced yesterday.
"Our exports reached US$3.76 billion in June, while imports
were recorded at $3.97 billion, so we had a deficit of US$204.9
million that month," he told reporters after a monthly cabinet
meeting at the Bina Graha presidential office.
"President Soeharto ordered all related parties to help boost
exports and reduce imports to get a surplus again and strengthen
our foreign exchange reserves," the minister said.
Indonesia's foreign exchange reserves are currently estimated
at about $13 billion.
Harmoko explained that Soeharto, who presided over yesterday's
meeting, wanted all related parties to take part in expediting
exports.
"The President also wants all related institutions to
facilitate imports of capital goods and auxiliary materials for
industrial production," he said. "However, we should not import
materials which have been produced domestically."
Harmoko said that non-oil products contributed $2.91 billion
to June's export revenues, while oil and gas exports accounted
for $858.3 million.
He said the June exports brought Indonesia's total exports
during the first six months of this year to $21.18 billion,
consisting of $15.91 billion of non-oil exports and $5.26 billion
of oil and gas exports.
"The January to June exports indicated a 15.05 percent
increase over the same period of last year," he said.
Harmoko said the country's imports during the first six months
of this year rose 30.7 percent to $19.28 billion over the
corresponding period last year. "Indonesia, therefore, gained a
trade surplus of $1.89 billion in the January to June period," he
explained.
According to the Central Bureau of Statistics, the trade
surplus of $1.89 billion in the January to June period was far
lower than the trade surplus of $3.65 billion in the first half
of 1994 and $4.59 billion in the first half of 1993.
Inflation
Harmoko said the cabinet meeting, which was attended by Vice
President Try Sutrisno, also reported a 0.32 percent increase in
the country's inflation rate in August.
The increase in the August inflation rate was caused by a rise
in food prices by an average of 0.07 percent, housing costs by
0.17 percent, clothing prices by 0.18 percent and the price of
miscellaneous goods and services by 0.8 percent
Inflation in August brought the country's cumulative inflation
rate to 6.41 percent during the first eight months of this year.
"We hope we can maintain the slow growth of prices in the
coming four months so we can keep the inflation rate below 10
percent this year," Harmoko said.
He said the money supply reached Rp 47.7 trillion ($21.04
billion) as of the end of July.
The money supply was recorded at Rp 47.33 trillion as of the
end of June and Rp 45.22 trillion as of the end of May.
The minister said the cabinet session also discussed extending
collateral-free loans of up to Rp 50 million for small
businesses.
"The state-owned Bank Rakyat Indonesia and Bank Negara
Indonesia will start providing the collateral-free loans this
month," he said. "Other banks will follow suit next month."
He said about 19 million small businesses will be eligible for
the loans.
Borrowers are not required to have collateral but must prove
that their business has good prospects, he said.
Minister of Finance Mar'ie Muhammad said last month that to be
eligible for the collateral-free loans small businesses must open
savings accounts at the creditor banks.
Harmoko said that the 4.6 percent increase in the number of
tourist arrivals in Indonesia was also discussed. Arrivals
reached 1.96 million during the first seven months of this year,
bringing in revenues of $2.34 billion. (riz)