Trade Minister Gita Wirjawan asked the government to raise the price of fuel oil (BBM). This was to reduce the trade deficit worse.

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Gita Wirjawan

Trade Minister Gita Wirjawan asked the government to raise the price of fuel oil (BBM). This was to reduce the trade deficit worse.



"If fuel prices increased, it will greatly help improve the current trade balance deficit," Gita said, when met at the Chamber of Commerce and Industry (Kadin), at the JW Marriot Hotel on Friday night (1/11/2013).

As reported, the Central Bureau of Statistics noted Indonesia's trade balance in January-November 2012 a deficit of 1.33 billion U.S. dollars. This was due to higher imports of 9.92 per cent (yoy) to 16.92 billion U.S. dollars. These imports of oil imports contributed 4.07 billion U.S. dollars and non-oil imports amounted to 3.94 billion U.S. dollars.

According to Gita, the deficit was not supposed to happen if the government is willing and immediately raise fuel prices. Therefore, the current condition of Indonesia's exports could not help rising imports. "Hopefully there is a correction in oil prices, so we do not continue to import oil pressing trade deficit," he added.

Meanwhile, in order to increase Indonesia's exports continued to decline, it will penetrate into the traditional markets in Africa, Middle East, and Latin America. The markets are now starting to look at the impact the increase in the export market. "The increase in the percentage of high, but the space is small. I really hope the global economy recovers quickly so that commodity exports could increase this year," he added.

Understandably, about 65 percent of Indonesia's exports are commodities. When commodity prices around the world has decreased, automated export earnings also fell. On the other hand, imports surged notably Indonesia instead of imported oil and gas. This is what causes the trade balance deficit.

"For the current macro conditions, it is very difficult to be optimistic," said Gita.