Deepest Decline in Capital Goods Imports During the First Semester of 2020

From January to August 2020, Indonesia's import value reached US$92.1 billion. This figure represents an 18% decrease compared to the same period in the previous year, which amounted to US$112.4 billion. The sharpest decline was observed in capital goods, falling 20% from US$18.5 billion to US$14.7 billion. Imports of raw materials/intermediate goods saw the second-highest decrease at 19%.

These two import categories contribute significantly to Indonesia's total imports, with raw materials/intermediate goods accounting for 74% and capital goods for 16%. Furthermore, such a substantial decrease in imports could impact economic activity, particularly in the manufacturing sector.

However, compared to the previous month, only capital goods imports experienced a decline, falling 9% from US$2 billion in July 2020 to US$1.8 billion in August 2020.