Aditya Suharmoko, Jakarta – Exports in August fell 0.43 percent to US$12.5 billion from the month before, as crude oil prices continued falling, dragging down other commodity prices.
"Exports declined because the volume and the prices of strategic commodities were down," Central Statistics Agency (BPS) deputy chairman for distribution statistics Ali Rosidi announced on Monday during the agency's monthly report.
Oil prices reached an all-time high above $147 per barrel in July, but have fallen sharply since then, with fears that the global financial crisis could hit demand even harder.
On Monday, crude oil prices slumped to an eight-month low, AFP reported. Brent North Sea crude for delivery in November tumbled $3.89 to $86.36 per barrel, while New York light sweet crude for November fell $4.13 down to $89.75 per barrel.
BPS reported meanwhile that non-oil-and-gas exports, also dropped 1.2 percent to $9.56 billion, as demand for rubber products, ores and clothing declined.
On a year-to-year basis however, exports in August rose by 30.26 percent, far above the government's estimated target of 12 percent.
Between January and August, total exports reached $95.45 billion, up 29.87 percent from the same period in 2007. Non-oil-and-gas exports, meanwhile, rose 22.38 percent to $73.54 billion.
Non-oil-and-gas products' main export destinations were Japan ($9.19 billion, or 12.5 percent), the United States ($8.51 billion, or 11.58 percent) and Singapore ($7.19 billion, or 9.77 percent) – all accounting for 33.85 percent of Indonesia's total non-oil-and-gas exports. "Trade with these countries in this eight month period was in surplus," Ali said.
Indonesia has gradually diversified its exports to reduce its dependency on the US as the world's largest importer, said Trade Minister Mari Elka Pangestu.
Many economists believe that the US is on the verge of a recession.
On imports, BPS said Indonesia in August imported more consumer goods and less capital goods or raw materials. Total imports last month fell 7.42 percent to $11.86 billion from July.
In August, Indonesia's imports were made up of 75.94 percent vehicles, industrial components and parts and 16.58 percent capital goods, down from 76.21 percent and 17.13 percent respectively in July. Consumer goods, meanwhile, rose to 7.48 percent from 6.66 percent.
Between January and August, Indonesia spent $89.83 billion on imports, most of which was on vehicles, machinery and parts – of which $11.9 billion was for capital goods, or 13.2 percent of total imports – BPS reported.
Of the total of $66.52 billion non-oil-and-gas imports between January and August, Indonesia mostly imported from China ($10.01 billion, or 15.05 percent), Japan ($9.49 billion, or 14.27 percent) and Singapore ($7.71 billion, or 11.59 percent).