Trade surplus plunges

Trade surplus plunges

JAKARTA (JP): Indonesia's trade surplus fell by 41 percent to US$4.75 billion in 1995 from $8.07 billion in the previous year despite a strong rebound last December, Minister of Information Harmoko announced here yesterday.

Speaking after a monthly cabinet meeting on the economy, Harmoko said total exports grew by 13.4 percent to $45.42 billion last year from $40.05 billion in 1994, while imports soared by 27 percent to $40.66 billion from $30.98 billion.

Oil and gas exports rose slightly to $10.47 billion last year from $9.69 billion in the previous year.

Harmoko said that President Soeharto, who chaired yesterday's cabinet meeting, had instructed ministers to help spur exports and curb imports.

"The President has ordered a reduction in imports, and if necessary limitations can be introduced," Harmoko told a news conference after the meeting.

He also explained that Indonesia enjoyed a trade surplus of $1.01 billion for the month of December, up from $633.8 million in November and $522.3 million in October.

Exports in December stood at $4.52 billion, while imports totaled $3.51 billion, he said.

"The December surplus is the highest monthly trade surplus in three years. It is expected to motivate efforts to boost exports and the trade surplus," he noted.

He went on to note that textiles, plywood, electronic goods and rubber products still dominated the country's non-oil exports last year.

Speaking on inflation, Harmoko said Indonesia's monthly inflation rate was recorded at 1.7 percent in February, compared with 2.16 percent in the previous month and 1.31 percent in February of last year.

February food prices were up 4 percent from January, while clothing and housing prices rose by 1.1 percent and 0.5 percent respectively. The prices of other goods and services rose by 0.1 percent, he said.

He said that Soeharto had instructed the National Logistics Agency (Bulog) to flood the market with the needed commodities so that the inflation rate for the current fiscal year, ending this month, would not exceed 10 percent.

On a fiscal year basis, the inflation rate as of last month reached 9.47 percent. The inflation rate for last fiscal year was recorded at 8.57 percent.

"The reasons for such high inflation -- Chinese New Year and Idul Fitri -- are now over. Market operations by the agency needs to be continued to reach a balance between supply and demand," Harmoko said.

The minister also announced that the government raised the price of fertilizers, both in the forms of tablets and granular, to Rp 330 (14 U.S. cents) a kilo, effective yesterday, from the previous prices of Rp 295 for tablet fertilizer and Rp 260 for granular.

He also disclosed that 27 sugar plants in Java are currently running inefficiently and one of them had even stopped operation.

Indonesia, one of the world's largest sugar producers, is a net importer of sugar. The importation of sugar is controlled by Bulog.

Harmoko explained that the government still keeps a monopoly on sugar "to protect sugarcane farmers and to reduce the burden on consumers."

He said Soeharto had suggested that more sugar mills be built outside Java to compensate for the 27 inefficient sugar plants in Java.

Soeharto also suggested that the private sector be involved in the development of the sugar industry to meet the increasing domestic need for sugar. (rid)

Editorial -- Page 4