Indonesia trade in deficit on mineral export ban

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Indonesia swung to a trade deficit in January as a controversial government ban on mineral ore shipments by Southeast Asia’s biggest economy crimped overall exports, data showed on Monday.

The January deficit of $431 million compared to a $1.5 billion surplus in December, the official Statistics Agency said.

“The 5.75 per cent drop in exports is due to the annual pattern and the coming into effect of the mineral law,” said Adi Lumaksono, a senior official at the agency.

Indonesia imposed a ban on exports of mineral ore including bauxite, nickel and copper beginning January 12.

The move is one of a series of industrial policies pushed by nationalist politicians who argue foreign firms reap an inordinate share of the profits from exploiting resources and business opportunities in the fast-growing economy.

The mineral export ban contributed in December to Indonesia’s biggest trade surplus in two years as mining firms ramped up exports to key markets like China ahead of the impending ban.

The January deficit is Indonesia’s first monthly shortfall since September.

However, inflation eased in February, the agency said Monday, the latest sign the economy was stabilising after a rough 2013.

Inflation came in at 7.75 per cent, lower than analyst estimates, and compared to 8.22 per cent in January.

Indonesia was hit hard last year by expectations the US Federal Reserve would start to wind down its economic stimulus programme, which analysts said could cause investment capital to exit emerging markets.

Meanwhile, HSBC’s manufacturing purchasing managers index — a gauge of future manufacturing activity — expanded for the sixth straight month in February albeit at a slower rate than in the previous month, the bank said.




Source : Channel News Asia | March 3, 2014


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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