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Summary:
Ø
Indonesia’s non oil and gas
exports increased 18.7 percent in the first ten months of 2005
compared to the same period in 2004, with machinery and
electrical tools, fats and palm oils, and coal the leading
export categories.
Ø
According to Central the
Statistic Agency (BPS), U.S.-Indonesia bilateral trade reached a
record USD 11.9 billion in 2004.
Ø
The Investment Coordinating
Board (BKPM) reported that foreign direct investment (FDI)
approvals reached USD 11.2 billion for the first ten months of
2005, an increase of 22 percent year-on-year (YoY).
Ø
President Susilo Bambang
Yudhoyono issued a Presidential Regulation on November 9
governing risk-sharing and public-private partnerships for
infrastructure projects.
Ø
Minister of Industry Andung
Nitimiharja admitted that textile and garments were being
transshipped through Indonesia on November 18.
Ø
President Yudhoyono issued a
Government regulation on October 25 increasing sales tax
on luxury cars.
Ø
Korean companies told President
Yudhoyono that they are
seeking strategic investment projects in Indonesia’s
infrastructure sector.
This report uses the
November 30 closing rate of Rp 10,035/USD for all calculations.
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Exports Continue Growth
The Central Statistics Office (BPS) announced on December 1 that Indonesia's exports
reached USD 70.3 billion for the first ten months of 2005, an increase of 19.5 percent year-on-year
(YoY). However, YoY export growth rates slowed during 2005 from 30 percent in January to 19 percent
in October, and BPS expects export growth may drop to 15 percent by December 2005. Non-oil and
gas exports accounted for USD 54.5 billion of the ten-month total, a YoY increase of 18.7 percent.
Meanwhile, January through October 2005 imports grew to USD 48.6 billion, a 29.1 percent increase
YoY. Overall, Indonesia's trade surplus reached USD 21.7 billion for the first 10 months of 2005, a 2.4
percent increase YoY.
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Table 1: Indonesian Trade Performance:
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January to October 2005 (in USD billions)
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Jan-Oct
2004
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Jan-Oct
2005
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Percent
Increase 2005/2004
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Exports
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58.8
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70.3
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19.5
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Oil and Gas
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12.9
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15.8
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22.2
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Non-oil and Gas
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45.9
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54.5
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18.7
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Agricultural
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2.0
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2.6
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25.5
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Industrial
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40.4
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45.8
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13.5
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Mining and others
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3.5
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6.1
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75.8
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Imports
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37.6
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48.6
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29.1
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Oil and Gas
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9.3
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14.8
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58.6
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Non-oil and Gas
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28.3
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33.8
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19.4
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Balance
of Trade
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21.2
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21.7
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2.4
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Imports by Broad Economic Categories:
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Imports
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37.6
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48.6
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29.1
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Consumtion Goods
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3.1
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3.8
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20.9
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Raw Materials
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29.4
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37.9
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29.2
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Capital Goods
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5.2
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6.9
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33.7
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Industrial exports, which account for 65.2 percent of total exports, expanded 13.5 percent
YoY to USD 45.8 billion from January through October. Machinery and electrical tools, fats and
palm oils, and coal were Indonesia's top three non-oil and gas exports for the period, comprising
11.2, 7.2 and 6.6 percent respectively. The United States took over in October as Indonesia’s largest
export destination in 2005, followed by Japan and Singapore.
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January to October 2005 (in USD billions)
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Jan-Oct
2004
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Jan-Oct
2005
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Percent
of Total
Jan-Oct 05
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Machinery/Electrical Tools
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5.6
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6.1
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11.2
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Fats and Palm Oils
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3.5
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3.9
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7.2
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Coal
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2.2
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3.6
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6.6
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Rubber and Rubber Products
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2.5
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2.8
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5.2
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Garment – not Knitted
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2.4
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2.6
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4.8
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Wood and Wood Products
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2.7
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2.6
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4.8
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Copper, Ash and Residues
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1.3
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2.5
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4.7
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Paper/Cardboard Paper
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1.8
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1.9
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3.4
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Non-Organic Chemical
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1.2
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1.3
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2.4
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Fisheries and Shrimps
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1.2
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1.3
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2.3
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Table 3: Indonesia: Main Non-Oil and Gas Export Destinations,
January to October 2005 (FOB
value, in USD billions)______________________
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Country
of Destination
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Jan-Oct
2004
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Jan-Oct
2005
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Percent
of Total (2005)
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USA
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6.9
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8.0
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14.7
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Japan
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6.9
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7.9
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14.6
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Singapore
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4.4
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5.8
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10.7
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China
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2.9
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3.2
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5.9
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Malaysia
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2.4
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2.7
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4.9
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South Korea
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1.5
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2.1
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3.8
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European Union
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7.4
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8.3
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15.2
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Taiwan
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1.2
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1.5
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2.6
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Australia
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0.9
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0.9
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1.7
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Others
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11.4
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14.1
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25.7
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Total
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45.9
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54.5
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100
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Source: Central Statistic Agency (BPS)
Separately, BPS also released its U.S. and Indonesia bilateral
trade data from 2001 to 2005 (for 2005, January through June only).
According to BPS statistics, the peak bilateral trade year by
volume was 2004 at USD 11.9 billion, with Indonesian exports to the
U.S. accounting for USD 8.7 billion and U.S. exports to Indonesia
accounting for USD 3.2 billion. Based
on the first six-months total for 2005, however, U.S.-Indonesia
bilateral trade is on track to top 2004 figures.
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Table
4: U.S.-Indonesia Balance of Trade 2001-05 (USD billion)
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Year
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Exports
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Imports
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Balance
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Total
Trade
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2001
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7.4
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3.2
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4.2
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10.6
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2002
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7.6
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2.6
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5.0
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10.2
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2003
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7.4
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2.7
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4.7
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10.1
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2004
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8.7
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3.2
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5.5
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11.9
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2005
(Jan-Jun)
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4.8
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1.9
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2.7
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6.7
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Garments and footwear, natural rubbers, furniture and sound
electronics were Indonesia’s leading exports to the U.S. for the
first six months of 2005. Garments
and sound electronics showed the strongest growth, while Indonesia’s
petroleum and crude oil exports to the U.S. dropped significantly -- a
reflection of steady declines in Indonesia’s production capacity and
its new status as a net oil importer.
Meanwhile, Cocoa, oil seeds and construction equipment and
parts were leading U.S. exports to Indonesia.
Exports of construction machinery and materials demonstrated
good growth, a reflection of increased investment in the economy.
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Tabel
5: Leading Indonesian Export to the U.S.
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2004
- 05 (in USD millions)
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STNC
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COMMODITIES
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2004
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2005
(Jan - Jun)
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034
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Fish, Fresh or Frozen
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81.5
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47.6
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036
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Crustaceans/mollusks/aquatic invert
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314.8
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158.2
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037
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Fish, crustacean, mollusks and other
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aquatic
invert., prepared/presetrved
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126.7
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70.1
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072
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Cocoa
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163.7
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78.2
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231
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Natural rubber latex, natural rubber and
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similar natural gas
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738.0
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404.5
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333
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Petrolium oil, crude
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430.4
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107.0
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334
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Petroleum products, refined
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