Indonesia Logs 4.93% Import Drop in August 2024; Lowest Manufacturing PMI in 3 Years

TEMPO.CO, Jakarta – The Ministry of Trade reported that Indonesia’s import value in August 2024 amounted to US$20.67 billion, a 4.93 percent drop compared to July 2024 at US$21.47 billion. 

Trade Minister Special Staff for International Trade Agreement, Bara Krishna Hasibuan, non-oil and gas sector imports weakened 0.89 percent while the oil and gas sector weakened 25.56 percent compared to the previous month.

Meanwhile, from January to August 2024, import value reached US$152.04 billion, which hiked 3.31 percent compared to the same period last year.

“The increase was attributed to the 2.47 percent hike in the non-oil and gas sector and 7.93 percent in the oil and gas sector,” Bara said in a press conference on Monday, September 23.

Bara explained that only imports of capital goods increased in August 2024 at 4.69 percent (MoM). Meanwhile, imports of raw/auxiliary materials fell by 7.16 percent (MoM), while imports of consumer goods dropped by 4.58 percent (MoM).

The import slowdown in Indonesia, he explained, also affected the contraction of Indonesia’s manufacturing activity. In August, Indonesia logged the lowest manufacturing Purchasing Managers’ Index (PMI) in 3 years at 48.9. In July, the PMI was recorded at 49.3. 

Several non-oil and gas import products with the deepest contractions were sugar and confectionery (HS 17) which fell by 28.48 percent; mineral fuels (HS 27) by 23.73 percent; food industry dregs/waste (HS 23) by 21.01 percent; optical, photography, cinematography devices (HS 90) by 17.66 percent; and knitted fabrics (HS 60) by 16.10 percent (MoM).

Meanwhile, the largest import growth occurred in precious metals and jewelry/gems (HS 71) which rose by 34.44 percent; cocoa and its derivatives (HS 18) by 29.66 percent; fruits (HS 08) by 19.68 percent; cereals (HS 10) by 18.96 percent; and milk, butter, and eggs (HS 04) by 12.04 percent (MoM).

Indonesia’s non-oil and gas imports predominantly come from China, Japan, and Australia with a total value of US$8.83 billion and a market share of 48.99 percent in August 2024.

OYUK IVANI S

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