[Kabar-indonesia] JP: Exports reach record high on surge in commodity prices

[Joyo at aol.com]

The Jakarta Post 
Tuesday, July 4, 2006

Exports reach record high on surge in commodity prices

The Jakarta Post, Jakarta

Exports rose 16.1 percent to a record high of US$8.34 billion in May, mainly 
due to rocketing prices of oil and other commodities in world markets.

Newly appointed Central Statistics Agency (BPS) chief Rusman Heriawan said 
Monday that total exports from January to May reached $38.39 billion, up 13.40 
percent from the corresponding period last year.

"Exports in May were the highest this country has ever recorded. If in the 
next semester we can maintain such performance, I am sure that at the end of the 
year our annual exports will reach $100 billion," Rusman said.

The record high for a year is $69.71 billion in 2004.

He attributed the increase partly to surging global crude oil prices, which 
remained above $70 a barrel.

Indonesia's crude oil exports in the first five months this year increased by 
8.10 percent to $3.3 billion from $3.1 million in the same period last year.

Total oil and gas exports from January to May increased by 17.68 percent to 
$8.6 billion.

Meanwhile, exports of non-oil products, including steel, wood and minerals, 
during the January-May period accounted for $29.8 billion, a rise of 12.2 
percent over the same period last year.

Because the country's imports reached only $23.14 billion in the period 
between January and May, it recorded a surplus of $15.25 billion in the first five 
months.

The BPS recorded January-May imports were 2.12 percent lower than $23.64 
billion in the same period last year.

Rusman also announced that inflation eased in June to an on-year rate of 15.5 
percent, compared with May's 15.6 percent.

Indonesia's consumer price index increased by 0.45 percent in June, from a 
0.37 percent monthly increase in May.

Rusman said the prices of staple foods, including rice, were the main driver 
of June's inflation, rising by 1.12 percent and contributing to 0.29 percent 
of the total monthly price index increase.

Accumulated inflation from January to June stood at 2.87 percent.

"With this trend, we hope this year's inflation would be below 8 percent, 
with an assumption of 2 percent inflation during the Idul Fitri post-fasting 
month holidays at the end of October," he said.

Core inflation -- which excludes volatile prices like food and regulated 
prices such as fuel -- was at a year-on-year level of 9.58 percent, and 
month-to-month rate of 0.31 percent in June.

The slowing down of inflation in June is a positive development for the 
economy, providing room for the central bank to begin lowering its reference 
interest from 12.5 percent at present, thus helping revive plummeting consumption 
and investment.

The consumption-driven economy only grew by 4.59 percent in this year's first 
quarter, as compared to 6.2 percent during the same period last year, due to 
the high inflation and interest rate.

Both the government and the central bank still consider inflation as 
containable at about 8 percent this year.

-----------------------------------------
Joyo Indonesia News Service
------------------------------------------