Mechanical Machinery: Indonesia's Top Import

The Central Statistics Agency (BPS) recorded that until November 2016, Indonesia's imports were dominated by machinery and mechanical equipment, valued at US$19.1 billion. This was followed by electrical machinery and equipment at US$13.9 billion. Motor vehicles and their spare parts ranked third, with import value reaching US$4.9 billion.

The government should pay serious attention to import performance by commodity group. The continuous decline in the value of imported raw materials is concerning. This decrease in demand for imported raw materials indicates a decline in absorption capacity, productivity, and industrial competitiveness in the country. This is supported by the drastic surge in imports of consumer goods. If this condition continues, it will further exacerbate the sluggishness of the real sector, especially the industrial sector.