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Rising imports indicate growth in economy: Ministers
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Trade Minister Thomas Lembong talks at a press conference at the Trade Ministry in Jakarta, January 16. (ANTARA FOTO/Puspa Perwitasari)
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xplaining the shrinking trade surplus in May, Trade Minister Thomas Lembong pointed to increased imports, which he said were a 'leading indicator' of economic growth in the country.
The country's trade surplus declined to US$375.6 million in May, just over half of the $667 million surplus recorded in April, because of increased imports amid decreasing non-oil and gas exports.
"Imports tend to rise when economic activity strengthens, driven by imports of raw materials and capital goods. I personally am still cautious about the contraction in exports," he said at the State Palace in Jakarta on Wednesday.
At the same time, he expressed optimism that exports this year would not fare quite as badly as last year, when they suffered a 14 percent drop. He predicted a contraction in exports of 6 percent to 9 percent.
Meanwhile, Coordinating Economics Minister Darmin Nasution acknowledged the acceleration of infrastructure projects had led to increased imports. "But, if we are too late in increasing the exports, there will be a deficit in the long run [...] we need to increase oil and gas exports," he said.
Central Statistic Agency (BPS) data revealed that the nation's exports amounted to $11.5 billion in May, a 0.31 percent increase from the previous month but a 9.57 percent decrease year-on-year (yoy). Imports in May increased by 2.98 percent on the month to $11.14 billion. (ags)
