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.