Friday, September 01, 2006

Export growth 16.42%, manufacturing the weakest

Indonesia recorded total export of US$55.77 billion in January-July 2006, grew 16.42% from the same period last year, thanks to higher commodity (oil, gas, coal & agriculture products) price.

According to the latest report from Central Bureau of Statistics (BPS), manufacture products only posted 13.78% growth while its contribution to the total export is 64.64%. Oil & gas export growth was 19.19% with mining products the highest growth of 29.36%. Agriculture products booked a healthy 17.24% growth thanks to 63.8% export growth of rubber and articles, followed by 15% growth in vegetable oil.
Coal export grew almost 42% in the period.
Manufacturing sector deserved serious attention due to its huge contribution in employment, especially in urban areas. Export of products under HS 85 (Electrical Machinery, Sound Recorders, Television Image), for example, decreased 0.5% while HS 84 (mechanical machinery) down 11.9% and organic chemical slipped 6%. Textile and apparels surprisingly recorded 9.6% growth in Jan-Jul, but decreased 12.7% in Jul against June.
Like the previous reports, my other concern is the oil and gas trade balance. In the Jan-Jul period, Indonesia booked net surplus of US$1.647 billion in oil and gas trading, almost double from US$981 million in the same period last year. But the refined oil products deficit has grown from US$4.1 billion to US$4.74 billion in Jan-Jul 2006.
Increasing domestic demand for fuel amid relatively no additional refining capacity would boost significanty the import and cut further the oil & gas surplus (mainly contributed by natural gas export).

Labels: , ,



Post a Comment

<< Home