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International 2013:Q2
Indonesia trade balance has deteriorated in April 2013. If in March 2013, Indonesia trade balance posted a surplus of USD 0.1 billion, conversely the economy relapsed into a trade deficit of USD 1.6 billion in April 2013. The deterioration in trade balance is attributable to the surge in imports by 9.6%. The rise in the value of imports is in part as a result of a surge in non oil imports from USD 11 billion to USD 12.7 billion, meanwhile, oil imports registered a decrease of USD 0.3 billion or 7.7%. The decrease in exports from USD 15.02 billion to USD 14.7 billion is another factor that contributed to the drop in the trade balance in April 2013.
Developments in Government Finances and Fiscal 2013:Q2
A. Development in Fiscal
In Q1 2013, Indonesia posted economic growth of 6.02%, which is lower than 6.29%, registered in the same period previous year. Slower economic growth is by and large, attributable to low utilization/absorption rate of the national budget, which in quarter I, was under 10 percent. In addition, the decrease in the performance of trade balance caused by falling commodity prices also contributed to lower than expected economic growth in the first quarter. To that end, it is not surprising that such conditions culminated in the revision of macroeconomic assumptions the 2013 state budget.
Developments in Monetary Sector 2013Q2
A. Money Supply
In April 2013, the central bank registered an increase in the level of money supply, M1 and M2 of IDR 836.51 trillion and IDR 3,364.12 trillion. If compared to the same period in the previous year, the level of M1 and M2, showed an increase of 16% and 15% respectively.
The increase in money supply has a tendency of contributing to depreciation of Rupiah and an increase in general level of prices. The high growth in money supply contributes to high inflation as it induces a rise in demand which if not accompanied by growth in the real sector generates an increase in prices.