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)