Trade Minister: Capital goods import rise reflects production strengthening

Jakarta (ANTARA) - Trade Minister Budi Santoso stated that the increase in capital goods imports in May 2026 reflects the strengthening of national production activity and capacity. Based on data from the Ministry of Trade, capital goods imports increased significantly by 21.04 percent on a monthly basis, compared to 6.33 percent recorded in April 2026. “The rise in capital goods imports reflects the strengthening of national investment activity and production capacity. This is expected to support increased industrial competitiveness and Indonesia’s exports in the future,” Budi said in a statement in Jakarta on Friday. In May 2026, Indonesia’s total import value was recorded at 24.81 billion US dollars, down 1.59 percent compared to April 2026, but up 22.16 percent compared to May 2025. The monthly decline occurred alongside a weakening in both oil and gas and non-oil and gas imports. Budi explained that the weakening of imports in May 2026 mainly stemmed from an 8.42 percent decline in consumer goods and a 5.72 percent decline in raw materials and auxiliary goods compared to the previous month. During January-May 2026, Indonesia’s total import value reached 111.33 billion US dollars, growing 15.24 percent compared to the same period the previous year. This increase was supported by a 27.89 percent rise in oil and gas imports and a 13.16 percent rise in non-oil and gas imports. Based on the Broad Economic Categories (BEC) classification, all components of imports experienced growth, namely capital goods by 17.53 percent, consumer goods by 17.05 percent, and raw materials and auxiliary goods by 14.41 percent. Meanwhile, by commodity, the highest increase in non-oil and gas imports occurred in aircraft and parts thereof, which surged 808.56 percent, followed by salt, sulphur, stone and cement which rose 73.94 percent, ores, slag and ash up 58.63 percent, mineral fuels up 40.48 percent, and various chemical products up 34.94 percent. In terms of country of origin, Indonesia’s non-oil and gas imports were still dominated by China, Japan, and Australia with a combined contribution reaching 52.68 percent. Meanwhile, the highest growth in non-oil and gas imports came from Mexico, which increased 247.36 percent, France 193.63 percent, and Spain 88.33 percent.