The value of capital goods imports is showing an upward trend. Meanwhile, the value of raw material imports has actually declined. This indicates that business activity is on an upward trend, driving medium- and long-term business expansion.
Based on data from the Central Statistics Agency (BPS), from January to November 2025, the value of capital goods imports reached USD 144.81 billion, an increase of 18.54% on an annual basis. The share of capital goods imports in total imports also increased, reaching 20.6% in January-November 2025, up from 17.7% in the same period last year.
The surge in imports of capital goods came from machinery and mechanical appliances and their parts (HS 84), electrical machinery and equipment (HS 85), and aircraft and their parts (HS 88).
At the same time, imports of raw materials experienced a downward trend. From January to November 2025, imports of raw materials reached USD 153.19 billion, down 1.46%. The share of raw material imports from January to November 2025 fell to 70.27% of total imports, after reaching 72.8% in the previous year.
Economic observer at the Institute for Development of Economics and Finance (Indef) Eko Listiyanto said that the increase in imports of capital goods such as machinery, mechanical equipment, vehicles, and electronics in Indonesia was generally caused by growing domestic manufacturing and investment activities.
The need to meet unmet production capacity and growth in new sectors such as electric vehicles, which indicate economic optimism and industrial expansion.
"This indicates a recovery and growth in the domestic economy, which is driving demand for production equipment," he told SUAR Jakarta (January 6, 2025).
A strengthening manufacturing sector and growing domestic economic activity are increasing demand for machinery and equipment to boost production capacity.
The increase in both Domestic Investment (PMDN) and Foreign Investment (PMA) also requires capital goods for factory construction, facility expansion, and equipment modernization.
Imports of capital goods such as CPUs, electric cars, navigation equipment, and smartphones are increasing in line with technological developments and new sectors, so it is no surprise that imports of capital goods continue to grow in Indonesia.
Eko said that industry needs new technology to improve efficiency and competitiveness, which often has to be imported due to local technological limitations, resulting in some machines with advanced technology being brought in from abroad.
BPS noted that Indonesia imports many goods from China. From January to November 2025, the value of non-oil and gas imports from China reached USD 77.52 billion, dominated by machinery and mechanical equipment.
BPS also noted that China once again became the country with the deepest deficit for Indonesia, particularly in the non-oil and gas sector, with a value of minus USD 19.28 billion. Meanwhile, cumulatively, Indonesia's total trade deficit with China, both in oil and gas and non-oil and gas, was recorded at minus USD 17.74 billion.
Deputy Head of Distribution and Services Statistics at BPS Pudji Ismartini explained that based on country and region of origin, the top three countries of origin for Indonesia's non-oil and gas imports from January to November 2025 were China, Japan, and the United States. These three countries accounted for around 52.87% of Indonesia's total non-oil and gas imports during that period.
Non-oil and gas imports from Japan were recorded at USD 13.28 billion. Similar to China, imports from Japan were also dominated by machinery and mechanical equipment (HS 84) with a share of 21.70% and an annual growth of 5.76%.
Non-oil and gas imports from the United States reached USD 8.93 billion. Machinery and mechanical equipment (HS 84) remained the main commodity with a share of 18.36% and recorded an annual import growth of 16.25%.
"The dominance of imports of machinery and mechanical equipment from these major countries reflects Indonesia's continued strong demand for capital goods and industrial support equipment," he said.
Maintaining the Increase in Capital Goods Imports
The Head of Employment at the Indonesian Employers Association (Apindo), Bob Azam, said that to maintain the increase in capital goods imports, the government and business actors could focus on strengthening domestic industry, substituting products with local goods, diversifying suppliers, regulating quotas, and import tariff policies.
This strategy aims to maintain cost stability, enhance the competitiveness of domestic products, and strengthen national economic independence.
"Seeking alternative local suppliers to reduce dependence on imported goods with fluctuating prices is also possible," he told SUAR Jakarta (January 6, 2025).
Read also:
Zikrina Ratri
The reason for importing capital goods in Indonesia is the limitation of domestic production, which necessitates seeking imported goods from abroad.
Imports of capital goods have increased, signaling positive economic growth and industrial activity, although this increase needs to be accompanied by regulations to ensure that imported goods are of high quality, safe, and contribute to tax revenue.
"The increase in capital goods imports could be an indication that the industry needs new machinery for expansion or production," he added.
