October’s Trade Balance Generates Surplus of USD 23.2 Million, Inflation Stands at 1.5 Percent

October’s Trade Balance Generates Surplus of USD 23.2 Million, Inflation Stands at 1.5 Percent

The Central Statistics Agency (BPS) reported on Monday (1/12) that trade balance of October 2014 generated a surplus of USD 23.2 million. Meanwhile, inflation after the increase of fuel oil prices in November 2014 stands at 1.5 percent.

Head of BPS Suryamin stated that the surplus of trade balance of October 2014 derived from total exports which reached USD 15.35 billion and total imports USD 15.33 billion.

Furthermore, according to Suryamin, from volume side, the trade balance of October 2014 recorded a surplus of 30.7 million tons. “This surplus derived from export volume which amounted to 43.84 million tons and import volume which amounted to 13.18 million tons,” he stated in BPS office in Jakarta.

Still in the same period, Suryamin explained, the trade balance of non-oil and natural gases generated a surplus of USD 1.131 billion, while the trade balance of oil and natural gas slipped into a deficit of USD 1.1 billion.

The accumulative trade balance from January to October 2014 faced a deficit of USD 1.645 billion which consisted of deficit from oil and natural gas trade for as much as USD 10.725 billion and surplus from non-oil and natural gas trade for as much as USD 9.08 billion.

“Oil trade ran a deficit of USD 19.659 billion and crude oil trade USD 3.268 billion, while natural gas trade recorded a surplus of USD 12.202 billion,” Suryamin added.

Inflation

Head of the Central Statistics Agency (BPS) Suryamin also reported that inflation pressure in November 2014 reached 1.5 percent, much higher than that of the previous month which reached only 0.47 percent. Inflation rate in November 2014 is relatively different from the inflation rate in June 2013 which reached 3.2 percent at the time the price of subsidized fuel oil increased. It indicates that the timing for implementing the policies on subsidized fuel oil price increase is quite right.

“Inflation in November 2014 reached 1.5 percent. This is different from the one at the time subsidized fuel oil prices were increased last year. This shows that the timing for increasing subsidized fuel oil prices is very important to be taken into consideration, because inflation in November is usually low,” Suryamin said.

Furthermore, Suryamin stated that all cities in Indonesia face inflation because the subsidized fuel oil price increase impacts almost everything. The highest inflation occurs in Padang which reaches 3.44 percent and the lowest one occurs in Manokwari 0.07 percent.

“In November 2014, inflation from food substances is high enough, reaching 2.15 percent, and on calendar year basis 7.12 percent and on year-on-year basis almost 8 percent. Therefore, we must pay special attention to food commodities,” he stated.

Commodities like prepared food, beverages, cigarettes, and tobacco contribute inflation of 0.11 percent, and on calendar year basis 6.03 percent. Transportation, communication, and financial services contribute inflation of 0.80 percent and on a calendar year basis 6.25 percent.

“Transportation includes the tariffs. Therefore, inflation from transportation, communication, and financial services in November 2014 reaches 4.29 percent. This inflation will keep going ahead, like public transportation charges, and the Government must control this,” Suryamin stated.

He said that this calendar year inflation (January-November) 2014 reaches 5.75 percent and annual inflation 6.23 percent (year-on-year). Then, the core inflation in November 2014 reaches 0.40 percent and the annual core inflation in November 2014 reaches 4.21 percent.

Suryamin added that the core components are still under control at 0.4 percent, but government-controlled prices 4.20 percent. Then the food commodity group like rice and chili is also relatively high, the prices fluctuate as much as 2.37 percent, and the inflation from energy group reaches 6.27 percent.

“The core inflation which reaches 2.41 percent is still below the general inflation which reaches 6.23 percent. It means that our economic conditions are still good enough,” Suryamin stated. (WID/ES)