Indonesia's Imports Surge in May 2021

The Central Statistics Agency reported that Indonesia's imports from January to May 2021 reached US$73.8 billion. This figure surged 22.74% compared to the same period in the previous year, which amounted to US$60.1 billion.

This increase was driven by all types of imports. Based on their use, imports of raw materials/auxiliary materials contributed the highest increase of 24.14%, rising from US$45.2 billion last year to US$56.1 billion.

The second-highest increase in import value occurred in consumer goods. Imports of consumer goods increased by 23.97% from the same period in the previous year, rising from US$5.8 billion to US$7.15 billion. Finally, imports of capital goods increased by 15.13%, from US$9.2 billion to US$10.6 billion.

The increase in imports of capital goods and raw materials/auxiliary materials indicates a positive upswing in the Indonesian economy. Consequently, the rise in capital goods imports will contribute to an increase in Gross Fixed Capital Formation (GFCF) or investment.

Meanwhile, raw materials/auxiliary materials signify positive movement in the manufacturing industry.