Trade surplus widens as export growth continues

Trade surplus widens as export growth continues

JAKARTA (JP): The country's trade surplus widened to US$2.70
billion in September from $2.5 billion in August as exports
recorded a consistent growth while imports remained low, at below
2 percent during the month, the Bureau of Central Statistics
(BPS) reported on Wednesday.

BPS chief Soedarti Subakti said exports in September remained
strong, growing by 4.47 percent to US$5.79 billion from $5.54
billion the month before.

September marked the fourth month in a row that the country's
monthly export level reached above $5 billion.

"If export levels in the next three months remain consistent,
or at least reaching $5 billion per month, than this year's
export level could hit above $60 billion," the agency predicted.

Soedarti said the cumulative export level from January to
September was $46.08 billion, an increase of 31 percent from
$35.08 billion in the same period last year.

In September, nonoil and nongas exports rose by 5.2 percent to
$4.45 billion, while oil and gas exports rose by 2.13 percent to
$1.33 billion, she said.

In the nonoil and nongas sector, exports of machines and
electrical appliances made the largest contribution, rising by
$69.1 million to $650.6 million

BPS also recorded strong imports in September, climbing 1.72
percent to $3.08 billion from $3.03 billion in the previous
month.

Soedarti attributed the higher imports entirely on nonoil and
gas imports, which rose to $2.46 billion as against $2.37 billion
in August

Whereas oil and gas imports in September dropped by 4.48
percent to $627 million compared to $658 million in the previous
month.

Soedarti said between January and August, imports of raw
material rose by 27.58 percent to $15.31 billion compared to the
same period last year.

In the same period, consumer imports dropped by 2.66 percent
to US$1.55 billion compared to the same period last year.

Deputy chief Kusmadi Saleh said the increased imports of raw
material would defer the impact of the recent sharp depreciation
of the rupiah against the U.S dollar.

"The rupiah's drop will not affect the production process as
there is enough raw material," he explained.

BPS said that higher fuel prices raised the monthly inflation
rate in October to 1.16 percent, pushing up the cumulative
inflation from January to October to 5.87 percent.

With the increase, the cumulative inflation rate of the first
seven months in the current April-December fiscal year is 4.89
percent or 7.97 percent year-on-year.

The statistics agency said the impact of the average 12
percent increase in fuel prices early this month could further
push the inflation rate for the whole calender year to 8 percent
or 9 percent, compared to the initial projection of between 5
percent and 7 percent.

"The impact of higher fuel prices can be seen by the 2.43
percent increase in the transportation and communication index,"
Soedarti said in a press meeting.

The transportation index, she said, had contributed 26 percent
to October's inflation rate.

The largest contributor to October's inflation rate was the
rise in prices of processed food, beverage, cigarettes and
tobacco index, which made up 36 percent.

Next was the housing index with a 33 percent contribution.

"But the October inflation rate is still moderate," deputy
chief Kusmadi Saleh explained.

He said falling rice prices, which previously provided the
largest contribution to the inflation rate, had helped weaken the
steam of higher fuel prices on the inflation rate.(bkm)