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Weak raw material imports do not indicate slowdown in manufacturing
The ongoing trade war between the United States and China had compromised export-oriented local industries
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President Joko “Jokowi” Widodo speaks during the release of exports at the Jakarta International Containers Terminal (JICT) at Tanjung Priok Port in North Jakarta on May 15. (Courtesy of/the Indonesia Port Corporations (IPC) )
A decline in the import of raw materials and capital goods from January until June does not reflect a slowdown in the output of the manufacturing industry, business players have said.
Yet, they said, there were other threats that may bring the slowdown into reality.
Imports slid 7.63 percent year-on-year (yoy) to US$82.2 billion from January to June, with all types of imports, from raw materials to capital and consumer goods, in the red, according to Statistics Indonesia (BPS) data released on Monday.
Raw and auxiliary material imports declined 7.7 percent yoy to $61.7 billion, data from BPS shows. Imports of capital goods and consumer goods also contracted 6.15 percent to $13.16 billion and 9.31 percent to $7.4 billion.
Responding to the figures, Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan P. Roeslani said production slowdowns had indeed occurred mostly in raw commodities such as coal. However, there had been no such downturn in manufacturing.
