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