Indonesia sees first annual import growth in 20 months

• Mar 17, 2021

JAKARTA: Indonesia has recorded its first annual import growth since July 2019, indicating a sign of recovery in factory activity and manufacturing investment, following last year’s economic downturn due to the Covid-19 pandemic.

Statistics Indonesia (BPS) reported the value of Indonesia’s imports was up 14.86% year-on-year (y-o-y) to US$13.26bil in February, ending the trend of negative growth since July 2019. The country’s import value fell 6.49% annually in January 2021.

BPS head Suhariyanto said the growth signalled a rebound in the country’s manufacturing sector given the large share of raw materials and capital goods in domestic imports.

“Bearing in mind our import structure, where 75% is raw materials, the import movement, so to speak, is satisfying as it indicates the revival of industries and, later, of investments, ” Suhariyanto said.

Aside from raw materials, capital goods contributed 16.23% of Indonesia’s February imports and consumer goods contributed the remaining 9.2%. The pandemic battered Indonesia’s trade activity last year, leading imports to nosedive 42.23% y-o-y and exports 29.15% y-o-y in May 2020, the sharpest plunge in eight years. ─ The Jakarta Post/ANN

Source: https://www.thestar.com.my/business/business-news/2021/03/17/indonesia-sees-first-annual-import-growth-in-20-months