REPUBLIKA.CO.ID , JAKARTA - Central Statistics Agency (BPS) recorded imports of oil and gas (oil) dropped 0.06 percent compared to August 2013.

Minister of Finance M Chatib Basri said the drop in oil imports indicates an improvement in the current account deficit (CAD).

"With the recent rising of price in fuel oil (BBM), the number is consistent to August-September figure," Basri said, Friday (1/11).

Although oil imports are down, there is an increase in overall value of imports.

Its recorded that September imports rose 18.86 percent when compared to August 2013 and grew 0.77 percent compared to the same period a year earlier to 15.47 billion USD.

"I guess there is a little increase in imports since last August, related to Eid festival, so the activity has somewhat decreased," he said.

The largest imports come from non-oil sector, i.e. 76.2 per cent of total exports. Most of the imported goods are raw materials amounting to 74.9 percent of total imports. Basri said that higher import of capital goods and raw materials indicates Indonesia's growth is still relatively strong.

"So it may be more or less consistent with the number of [Indonesia investment board] BKPM figures in the third quarter," he said.

By looking at the non-oil imports figures, the government expected the 5.8 percent of economic growth is still achievable.

Meanwhile, Indonesia's trade balance in October 2013 returned to a deficit of 657.2 million USD. Compared to the previous month, Indonesia's trade balance was on surplus of 132.4 million USD.

Basri is optimistic, until the third quarter, the CAD is still below 4.4 percent. While, the year-end deficit figures estimated between 3.3 to 3.5 percent.

"So it shows that the trade balance has been improved," he said.

Ed: Nidia Zuraya

Ikuti Whatsapp Channel Republika