[Kabar-indonesia] 2 JP upates: Exports show record growth; Inflation slows slightly

[JoyoNews at aol.com]

also: JP: Inflation slowing slightly, says BPS 

The Jakarta Post
Tuesday, October 3, 2006

RI exports show record growth 

Andi Haswidi, The Jakarta Post, Jakarta

High global demand for non-oil and gas commodities, including crude palm oil, 
coal and rubber, has once again helped the country's total exports reach a 
record growth level.

The latest data from the Central Statistics Agency (BPS), released Monday, 
shows that the country's exports from January to August reached US$64.63 
billion, 17.13 percent higher than they were in the same period last year. 

"The country's export growth continues to show increases, even though the 
margin is getting smaller," BPS chief Rusman Heriawan told reporters in Jakarta. 

The latest BPS report shows that since the beginning of the year, Indonesia 
has seen its overall exports maintain their upward trend, despite some slight 
ups and downs in the oil and gas sector. 

On a monthly basis, August's exports reached a total of $8.89 billion or 0.73 
percent higher than July's record of $8.82 billion, which was also higher 
than June's figure. 

More than 63 percent of increases in January-August exports were attributable 
to such commodities as rubber, rubber goods, mineral fuel, bronze, metal 
ores, fat, natural oils and paper. 

The non-oil and gas exports in August reached $7.04 billion, increasing 4.08 
percent on July, while the cumulative figure from January to August reached 
$50.31 billion, or a 17.21 percent increase on the same period in 2005 

The most significant increase by percentage in August in the non-oil and gas 
sector was the export of metal ores, cracks and ashes, reaching a total of 
$184.8 million in total. 

As for oil and gas, August exports dropped by 10.27 percent from $2.5 billion 
to $1.84 billion as the exports of crude oil decreased by 11.5 percent to 
$657.8 million and exports of gas declined by 12.56 percent to $908 million. 

By destination, the BPS data shows that Japan remained the biggest importer 
of Indonesian goods up to August, at a total of $7.4 billion. The U.S. came 
second at $7.1 billion followed by Singapore at $5.1 billion and China at $3.48. 

On imports, the total value in August reached $5.62 billion or an increase of 
4.35 percent on July's $5.38 billion, while the total figure from January to 
August was $39.93, which is 2.56 percent higher than 2005's $38.94 billion. 

The country's non-oil and gas imports in August hit $3.95 billion, increasing 
by 10.97 percent compared to July while its total from January to August 
reached $27.4 billion, decreasing 0.08 percent compared to last year. 

As for oil and gas imports, the total figure for August reached $1.67 billion 
or decreasing 8.55 percent compared to the previous month, while the January 
to August total reached $12.53 billion or increasing 8.84 percent compared to 
2005. 

With investment yet to pick up at expected levels, Indonesia will need a 
considerable contribution from net-exports to drive its economic engines, in 
addition to domestic consumption. 

At present, net-exports only make up about 8 percent of the country's gross 
domestic product. 

--------------------------------------

The Jakarta Post
Tuesday, October 3, 2006

Inflation slowing slightly, says BPS 

Urip Hudiono, The Jakarta Post, Jakarta

photo: Latest Inflation Data: Central Statistics Agency chief Rusman Heriawan 
(left), accompanied by his deputy for economic statistics, Petojo, announces 
September's inflation figures in Jakarta on Monday. (JP/R. Berto Wedhatama) 

Consumer prices crept up slightly in September with the coming of the 
Ramadhan fasting month, but inflation on a yearly basis continued to show a slowing 
trend, opening up more room for further interest rate cuts that should inject 
new life into the economy.

Consumers had to pay 0.38 percent more on average for goods and services in 
September than in the previous month, the Central Statistics Agency (BPS) 
reported Monday, particularly for staple foodstuffs, education and household 
utilities. 

As compared to September last year, however, inflation continued to ease to a 
year-on-year level of 14.55 percent. Inflation up until the end of the third 
quarter, meanwhile, has so far come to around 4.06 percent. 

On-year inflation stood at 14.9 percent in August, seeing a monthly increase 
of 0.33 percent. 

"Last month's inflation was nothing out of the ordinary, and is still 
controllable," BPS director Rusman Heriawan said. 

"This is despite inflationary pressures already building up since the 
beginning of Ramadhan, with staple food prices slightly rising." 

The prices of staple foodstuffs, particularly spices and meat, the largest 
contributor to last month's inflation, were accounting for 0.16 percentage 
points after prices rose 0.62 percent. 

The public also had to spend significantly more on tuition fees for higher 
education, with the inflationary effects of the new academic year apparently 
still persisting. 

The cost of education, together with recreation and sports, increased by 1.84 
percent and contributed 0.12 percentage points to September's monthly 
inflation, while the cost of housing, electricity and fuel rose by 0.28 percent to 
account for 0.07 percent of last month's inflation. 

Core inflation, which excludes volatile prices like food and regulated prices 
such as fuel, stood at a lower on-year rate of 9.13 percent and a monthly 
level that was 0.35 percent lower than in August. 

The continuing slowdown in inflation in September will add further 
justification for the central bank's recent rate cuts, which are in turn expected to 
help accelerate growth, which has been less than hoped for due to high levels of 
inflation and interest rates. 

The BPS expects on-year inflation to drop to single digits in October, Rusman 
said, concurring with similar forecasts from analysts as the effects from 
last year's fuel price hikes wear off by October. 

"On-year inflation will hopefully fall below 10 percent, but, again, only if 
nothing extraordinary affecting prices occurs," he said. The upcoming Idul 
Fitri holidays later this month may still increase inflationary pressures, 
although not by as much as those that resulted from the fuel-price hikes in October 
last year. 

Inflation surged to 17 percent after the fuel price increases, forcing Bank 
Indonesia to up its key rate to 12.75 percent -- a combination that severely 
dented Indonesia's economic growth, which slumped to 4.6 percent in the first 
quarter before managing to rebound to 5.2 percent in the second. 

BI's Board of Governors is scheduled to hold its next policy meeting this 
Thursday. The central bank cut its key BI rate last month for the second time to 
11.25 percent on the recent trend of slowing inflation. 

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