Indonesia is the fourth most populous country in the world, and it is a developing nation with a fast-growing economy. Every year, Indonesia imports a wide range of goods and services from other countries to support its economy and provide its citizens with the necessary goods and services. In this article, we will discuss the import of Indonesia in 2018, its impact on the economy, and some of the most significant imports of the year.
Overview of Indonesia’s Imports
In 2018, Indonesia imported goods and services worth USD 188.7 billion, which was a 19.7% increase from the previous year. Indonesia mainly imports raw materials, capital goods, and consumer goods. Raw materials like crude oil, coal, and palm oil are the primary imports of Indonesia. Meanwhile, capital goods such as machinery and equipment are essential imports for the country’s industries, while consumer goods are vital for meeting the needs of the population.
Impact of Imports on the Economy
The import of goods and services has a significant impact on Indonesia’s economy. Imports help to meet the domestic demand for goods that are not produced locally. It also helps to keep the prices of goods under control since the import of goods reduces the pressure on local producers to increase their prices. Additionally, imports help to boost the country’s industrial sector by providing raw materials and capital goods that are necessary for production. Finally, imports help to increase the country’s foreign exchange by providing a broad base for exports.
Significant Imports of Indonesia in 2018
Indonesia’s import of goods is incredibly diverse and varied. In 2018, some of the most significant imports of Indonesia included crude oil, machinery, electrical equipment, iron, and steel, among others. Let’s discuss some of these imports in detail:
Crude Oil
Indonesia is one of the largest crude oil importers in the world. In 2018, Indonesia imported crude oil worth USD 11.3 billion, which accounted for 6% of the total imports of Indonesia. The import of crude oil is essential for meeting the domestic demand for petroleum products like gasoline, diesel, and kerosene. Indonesia imports crude oil mainly from Saudi Arabia, Iran, and Russia.
Machinery
Machinery is another essential import of Indonesia. In 2018, Indonesia imported machinery worth USD 22.8 billion, which accounted for 12% of the country’s total imports. Machinery is used in various industries, including mining, manufacturing, agriculture, and construction. Indonesia imports machinery from Japan, China, and Singapore.
Electrical Equipment
Indonesia’s import of electrical equipment is also significant. In 2018, Indonesia imported electrical equipment worth USD 10.4 billion, which accounted for 6% of the country’s total imports. Electrical equipment includes items such as telecommunication equipment, TVs, and radios. Indonesia imports electrical equipment from China, Japan, and South Korea.
Iron and Steel
Indonesia’s import of iron and steel is also noteworthy. In 2018, Indonesia imported iron and steel worth USD 6.2 billion, which accounted for 3% of the country’s total imports. Iron and steel are essential for the construction and manufacturing industries. Indonesia imports iron and steel mainly from China, Japan, and South Korea.
Conclusion
Indonesia’s import of goods and services in 2018 was significant. Imports help to meet the domestic demand for goods and services, keep the prices of goods under control, and boost the country’s industrial sector. Some of the most significant imports of Indonesia in 2018 included crude oil, machinery, electrical equipment, iron, and steel. These imports are essential for meeting the needs of the population and supporting the country’s economic growth.
