Indonesia's imports surged 34.27 percent year-on-year to USD 22.54 billion in June, driven by higher purchases of raw materials and oil and gas products, according to data released by Statistics Indonesia (BPS).
The sharp increase outpaced export growth of 8.84 percent, resulting in a trade deficit of USD 450 million in June, the country's second consecutive monthly deficit after recording a USD 1.61 billion shortfall in May, Reuters reported.
BPS said imports of oil and gas products rose 105.15 percent from a year earlier, led by crude oil and refined petroleum products. Non-oil and gas imports also increased, supported by stronger demand for industrial inputs.
Raw materials and intermediate goods remained the largest component of Indonesia's imports. BPS data showed such goods accounted for more than 70 percent of total imports during the first five months of 2026, underscoring the manufacturing sector's reliance on imported inputs.
Deputy for Distribution and Services Statistics at BPS Pudji Ismartini said raw materials continued to dominate Indonesia's import composition, as quoted by Katadata. She added that capital goods and consumer goods made up a smaller share of total imports.
The latest import figures come after imports had already accelerated earlier in the year. Total imports reached USD 111.33 billion in the January-May period, with raw materials and auxiliary goods accounting for the largest share, according to BPS data compiled by Katadata.
Reuters reported that the June trade deficit was smaller than economists had expected, as stronger exports of nickel products and palm oil helped offset the sharp rise in imports. However, economists warned that slowing demand from China, higher costs for imported industrial inputs, and a weaker rupiah could continue to weigh on Indonesia's external balance.
The import surge follows a period of rising domestic demand for industrial inputs. Earlier this year, Trade Minister Budi Santoso said increases in imports across consumer goods, raw materials, and capital goods indicated stronger household consumption and industrial activity, as quoted by Antara. "The increase in imports occurred across all categories of goods, indicating rising consumer demand as well as industrial demand for raw materials and capital goods," he said.
