Wednesday, 18th October 2017

Hatta says imports hike hurts balance of trade

9th August 2012 | 1.069 Views
Hatta says imports hike hurts balance of trade
Hatta Rajasa. (ANTARA)
Jakarta (ANTARA News) - Indonesian chief economic minister Hatta Rajasa has expressed concern over imports hike he thought could hurt the country`s balance of trade as it could create a trade deficit.

In view of that he called on parties in the investment sector here on Thursday to strive not to use imported materials to reduce the negative impact of the imports on the balance of payment.

The minister personally asked the Investment Coordinating Board to prioritize on domestic rather than imported products.

He said investment must not be centered on industries that need imported raw materials but exports must also develop.

"Unless care is taken well an increase in the imports of components could soar to hurt the balance of trade," he said.

Two things needed to be monitored by the investment sector namely improving domestic consumption and government spending, he said.

Regarding domestic consumption the minister called on all parties to continue safeguarding the domestic market and control inflation so that they would not erode economic growth.

"We must maintain that imports will not be too big and inflation would not be too high," he said.

According to the National Statistics Agency Indonesia`s economy grew 6.4 percent in the second quarter with exports and imports growing 4.8 percent and 9.5 percent respectively.