02/08/2011 (Jakarta Post) - Indonesia will likely see exports breaching a record-high of US$200 billion this year, and the trade deficit with China continuing to decrease, the Central Statistics Agency (BPS) has said in response to first half export-import results.

BPS chief Rusman Heriawan said in Jakarta on Monday that during the first half of this year, total exports topped $98.64 billion, up 36.02 percent from $72.52 billion in the same period last year, mainly on the back of exports of the country’s non oil commodities, such as coal and palm oil, which settled at $12.18 billion and $10.36 billion, respectively.

From Janurary-June, non-oil and gas exports reached $79.06 billion, up by 33.2 percent from the same period in 2010.

“The performance of exports in the second semester is usually better than in the first. If the exports continue to grow in the second semester, the 2011 exports can approach or exceed $200 billion and will reach a new record,” he told a press conference at his office in Jakarta.

Earlier this year, the government set an non-oil and gas export target of $146 billion, a modest 15 percent increase from 2010, when overall exports hit an all-time high of $127 billion.

The government has not announced a target for total exports inclusive of oil and gas.

Rusman said that in the first half of this year, imports rose by 32.82 percent on a year-on-year basis to $83.59 billion from $62.94 billion in the corresponding period last year.

“The surge in imports is still lower than the increase in imports of 36.02 percent. It’s a good sign that exports are growing higher than imports,” he said.

A significant increase in exports generated a trade surplus of $15.05 billion during the period despite a growing value of imports in recent months as the rupiah’s appreciation has allowed manufacturers push up imports of raw materials and intermediary goods to support production.

Rusman noted that Indonesia might see a potential trade surplus with China at the end of this year as the deficit continued to slide as in recent months Indonesia’s exports to China had also grown faster than its imports.

Another indication, he added, was the deficit with China in June, which was lower than the average monthly deficit during the January-June period, of $500 million.

“In June, the trade deficit was $365.2 million. Although we are still suffering a trade deficit with China, the figure has increasingly declined,” he said, adding that during the month, Thailand overtook China as the largest deficit contributor to Indonesia’s trade balance, with the deficit reaching $471.7 million.

Concerns have arisen due to a widening deficit with China, one of Indonesia’s major trading partners, since the implementation of the ASEAN-China free trade agreement last year.

Japan, China and the United States remained the largest three export destinations of the country’s non-oil and gas products, valued at $8.97 billion (11.25 percent of overall exports), $8.95 billion (11.32 percent) and $7.9 billion (9.99 percent), respectively.

China was still Indonesia’s biggest source of imports, with a total import value of $12.05 billion (18.73 percent), followed by Japan with $8.66 billion (13.45 percent).

Thailand became Indonesia’s third-largest supplier of imports, displacing Singapore — with the bulk of the products fruits, vegetables and rice — reaching a total value of $5.19 billion, or 8.06 percent of total imports, Rusman said.

Imports during the January-June period were 75.23 percent comprised of raw materials and intermediary goods — considered essential for the domestic manufacturing industry — up from 73.45 percent last year.