Sept. export up 4 percent in first growth since June
Sept. export up 4 percent in first growth since June
The Jakarta Post, Jakarta
Exports in September reversed a two-month straight fall, with
sales rising 4.21 percent to US$5.10 billion, indicating together
with a 2.54 percent surge in imports to $2.89 billion, that
export markets may be heading for improvement.
September export figures mark a turn from falling sales since
June. "After exports fell below the $5 billion mark in August,
Indonesian exports rose by 4.21 percent in September to $5.10
billion," said the Central Bureau of Statistics (BPS) in its
monthly trade and inflation report on Friday.
Contributing to the higher sales were better non-oil and gas
exports, which rose by 3.85 percent to $3.88 billion. Sales of
machinery and power equipment led the growth in this sector, the
report said.
Over the same period, oil and gas exports climbed by 5.57
percent to $1.07 billion. BPS attributed the growth to a 10.79
percent and 18.67 percent increase in sales of natural gas and
oil respectively.
Crude oil exports however slid by 3.12 percent on lower
production volume despite favorable world oil prices.
Imports in September continued to rise, climbing by 2.54
percent to $2.89 billion from $2.82 billion the month before.
"The increase is caused by higher non-oil and gas imports, up
4.84 percent," BPS said, adding that imports of oil and gas
products fell by 5.89 percent instead.
With export exceeding imports, trade surplus for September
came to $2.21 billion, or an increase of $140 million from the
previous month.
Indonesia's trade surplus, or net-export, contributes around 9
percent to the nation's economic growth, with the other two
growth engines being investment and domestic consumption.
Anticipation of better export sales could uplift growth in
investment and consumption, as exporters must expand their
production capacity through which they also generate new jobs.
Since most exporters use imported raw materials for their
products, a rise in imports also often indicates manufacturers
anticipate higher demands.
The September export rebound followed positive third-quarter
reports of the U.S. economy -- Indonesia's biggest export market.
The U.S. gross domestic product (GDP), which measures the
total value of goods and services a country produces every year,
grew by a 3.1 percent annual rate during the third quarter, as
against 1.3 percent in the previous quarter.
Around 16 percent of Indonesian exports go to the U.S.,
followed by Japan with 13 percent and Singapore with 10 percent.
Analysts however have warned that the surge in the U.S. GDP
was unsustainable, meaning Indonesia cannot be assured of export
recovery.
Meanwhile, Indonesia's consumer price index in September rose
by 0.54 percent from a month earlier, BPS reported. Over the same
period last year, it said, the index grew by 10.33 percent, or
above the government's projected rate.
All price indexes recorded an increase, led by a 1.03 percent
growth in the cigarettes and tobacco sector and 0.63 percent in
the transportation and communication sector.
The government is expecting the 2002 inflation rate to come at
below 10 percent, but that target may be in doubt as the upcoming
festive seasons in December tend to lift prices.
Inflationary pressure has also been mounting since the Oct. 12
Bali bombing as the subsequent weaker rupiah made imports more
expensive.
Keeping inflation down is crucial to maintain consumers'
purchasing power since domestic consumption makes up about 70
percent of the country's economic growth.
Also about half of the government's Rp 55 trillion (about $5.9
billion) in domestic debt payment this year is tied to Bank
Indonesia's benchmark rates which trails inflation movement.