The Central Statistics Agency (BPS) recorded a 3.47 percent decrease in the value of raw material/auxiliary imports in August 2017, reaching Rp 10.07 trillion from the previous month. Similarly, the value of capital goods imports also decreased by 5.95 percent to US$ 2.22 billion from the previous month. The decline in raw material and capital goods imports last month was temporary, following a significant surge in July.
The domestic processing or manufacturing industry showed signs of recovery in August, after experiencing contraction in May and June. This is reflected in the Manufacturing Purchasing Managers' Index (PMI) which rose to 50.7 last month from 48.6 in the previous month. An index above 50 indicates growth, while below 50 indicates contraction.
Cumulatively (January-August) 2017, the value of raw material imports increased by 15.43 percent to US$ 75.12 billion, or 75.37 percent of the total import value. Similarly, the value of capital goods imports also strengthened by 9.09 percent to US$ 15.48 billion.
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