Performance of Indonesian Trading is getting more Alarming

KATADATA ? The performance of Indonesian export and import is weakening. The Central Statistics Agency (BPS) reported that the performance of Indonesian export in July was at US$ 11.4 billion, or falling by 19.1% compared to the same period last year. This is the worst export performance since August 2012.

The same also goes for the import performance in July, which was US$ 10.1 billion or falling by 28.4% compared last year. The performance is the lowest since July 2009, when Indonesia was trying to deal with the impact of economic crisis in 2008.

The drop in the export and import performances have made the trade balance in July to experience a surplus of US$ 1.3 billion. The data of this trade does not show any better signs after the economic growth slows down since the end of 2009.

An economist of Samuel Sekuritas, Lana Soelistianingsih, said that the trade performance in Indonesia is alarming. Lana has asked the government to seriously monitor the trade performance. The fall in the import performance, especially in the basic ingredients as well as capital goods, is an indication of a slowing economy.

If this continues, then the investment performance would be weaker, especially in ext year. As the result, the target of economic growth in 2016 that the government has set to be at 5.5% would not be achieved.

?If until August it hasn?t increased yet, it needs a serious attention,? said Lana when contacted by Katadata, Tuesday (18/8).

Furthermore Lana also hoped so that the government may soon accelerate the budget absorption, especially the ones that are used for investment activities. ?There are still possibilities for it to increase. But if the import hasn?t increased, then we need a very high alert on the matter,? explained Lana.

An economist of DBS Group Research, Gundy Cahyadi, said that the fall in the import performance is an alarming signal amid the risk of slow economic growth. According to Gundy, the fall in import is not just because the rupiah?s value is depreciating, but there is also a problem in the domestic demand. The import data that is released by the BPS has indicated a weakening demand.

The Deputy in the Statistic Production Field of BPS, Adi Lumaksono, explained that Indonesian export and import performances are affected by the global economic condition that is currently slowing down. ?Especially it is also in relation with the condition of several currencies of the world against the US dollar. That would affect the flow of goods from one country to another. So, it?ll end up on the fall in commodity prices especially for export,? said Adi.