Antara News·Indonesia·Friday, October 30, 2026 at 10:17 AM UTC

Minister urges businesses to diversify raw material import origins

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Suharsana Aji C, Resinta Sulistiyandari

Jakarta (ANTARA) - Trade Minister Budi Santoso encouraged businesses to diversify their import countries of raw materials and capital goods.

"When 91 percent of our capital goods and raw materials are imported, we need to expand our suppliers. We should not be dependent on one or two suppliers; it can increase their bargaining power," he said in Jakarta on Friday.

Statistics Indonesia (BPS) data indicated that manufacturing accounts for 82 percent of Indonesia's exports, while the remaining share comes from the mining, oil and gas, and agriculture sectors.

"If we look at the manufacturing industry sector, it also grew by 7.87 percent. This is also in line with our import structure where 91 percent of our imports are raw materials and capital goods, while 8.7 percent are consumer goods," he explained.

According to Santoso, this reflects continued growth in domestic industries. The government aims to use the domestic market to drive industrial growth while leveraging global markets to expand export capacity.

Earlier, the minister said the increase in capital goods imports in May 2026 indicated strengthening national production activity and capacity.

According to Ministry of Trade data, capital goods imports increased significantly by 21.12 percent month-on-month, compared to 6.33 percent in April 2026.

In May 2026, Indonesia's import value was recorded at US$24.81 billion, a decrease of 1.59 percent compared to April 2026, but an increase of 22.16 percent compared to May 2025.

Santoso explained that the weakening imports in May 2026 primarily stemmed from an 8.42 percent decrease in imports of consumer goods and a 5.72 percent decrease in raw/auxiliary materials compared to the previous month.

From January to May 2026, Indonesia's import value reached US$111.33 billion, representing a 15.24 percent increase compared to the same period the previous year, driven by oil and gas imports, which grew 27.89 percent, and non-oil and gas imports, with an increase of 13.16 percent.

Based on the category of goods used, all import components experienced growth, namely capital goods (17.53 percent), consumer goods (17.05 percent), and raw/auxiliary materials (14.41 percent).

Meanwhile, by commodity, the highest increase in non-oil and gas imports occurred in aircraft and parts, which surged 808.56 percent; followed by salt, sulfur, stone, and cement (73.94 percent); metal ore, slag, and ash (58.63 percent); mineral fuels (40.48 percent); and various chemical products (34.94 percent).

China, Japan, and Australia remained the largest sources of Indonesia's non-oil and gas imports, with a combined contribution of 52.68 percent.

Meanwhile, imports from Mexico recorded the highest growth at 247.36 percent, followed by France at 193.63 percent and Spain at 88.33 percent.

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