Indonesia reports first annual import growth in 20 months

 Indonesia reports first annual import growth in 20 months (Photo: https://www.thejakartapost.com/)

Jakarta (VNA) - Indonesia has recorded its first annual import growth since July 2019,indicating a sign of recovery in factory activity and manufacturing investment,following last year’s economic downturn due to the COVID-19 pandemic.

The Central Statistics Agency (BPS) of Indonesia reported that Indonesia’s import value was up 14.86 percentyear-on-year to 13.26 billion USD in February 2021, ending the trend of negative growth sinceJuly 2019.

Previously, the country’s import value fell 6.49 percent annually in January 2021.

BPS head Suhariyanto said thegrowth signaled a rebound in the manufacturing sector of Indonesia as 75 percent ofgoods imported to the country being raw materials.

The increase in imports indicates the revival of industries and, later, ofinvestments, he said.

Indonesian Trade Minister Muhammad Lutfi said import growth was in line with thegovernment’s expectations, especially after the government started to exempt the sales tax on luxury goods (PPnBM) on newly purchased sedans and two-wheel drive cars with an engine capacity of no larger than 1,500 cc.

A number of industries of Indonesia were predicted to grow with thediscontinuation of PPnBM for automotiveproducts. An increase in raw material imports is expected to ensure a betterinventory of Indonesian cars this year than last year./.

VNA