"What we need to keep watch on is that our exports have not recovered. So, that is having an impact on our balance of trade," he said here on Tuesday.
The fact that the exports have not recovered is not separable from the ongoing uncertainty about the global economy which led to a low demand for Indonesian products, he said.
"Under these circumstances, we still need investment. So it doesnt matter if imports are higher (than exports). Furthermore, the imports comprise capital goods, and that is good for us. An increase in the import of capital goods means there is investment for us," he said.
The increase in the import of capital goods is a good indicator of economic growth, he said.
He denied that the recent increase in government spending on imported goods has led to a deficit in the balance of trade.
"The same thing happens when we raise government expenditure anytime. This means that the increase in imports is not because of government expenditure but private investment," he said.
Indonesias balance of trade recorded a deficit of US$346.4 million in November 2015. However, overall, the balance of trade from January to November saw a surplus of US$7.81 billion.(*)
Editor: Heru Purwanto
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