Finance Minister: Imports Rise Due To Supporting The Production Sector

INDUSTRY.co.id - Jakarta, Central Bureau of Statistics (BPS) noted that Indonesia's trade balance in May 2018 experienced a deficit of up to 1.52 billion US dollars.

Meanwhile, export value in May 2018 was recorded at 14.54 billion US dollars, an increase of 16.31 percent compared to the previous month and up 22.28 percent (yoy).

While for imports in May 2018 recorded reached 17.64 billion US dollars, an increase of 9.17 percent compared to the previous month and up 24.75 percent (yoy).

Finance Minister Sri Mulyani Indrawati confirmed the increase in import value in May 2018 will support investment activities in the production sector.

"This increase in imports to support the production sector," he said in a press conference on the development of the state budget in Jakarta (26/6/2018).

Sri Mulyani said that imports recorded during this period were mostly capital goods and raw materials needed to boost production in various economic sectors.

Therefore, if the portion of this import is reduced in the short term, then the impact has the potential to disrupt investment performance and reduce economic growth.

However, he ensures the government in the medium to long term will build a domestic industry oriented to raw materials to reduce imports.

"The government will continue to improve the 'policy' to build the domestic industry so that the needs of intermediate goods and capital goods can be fulfilled in the country," said Sri Mulyani.

In addition, according to him, strengthening the structure of domestic competitiveness is also very important in order to increase export performance and trade balance deficit diminishing.