THE STRUCTURE OF IMPORT IN INDONESIA: A CONTRIBUTION AND SHARE “PERANAN” ASSESSMENT

Fatima Tuzzahara Alkaf

doi:10.30871/jaba.v4i2.2086

Abstract

The purpose of this study was to determine the contribution of the import structure to total import in Indonesia and also to determine the share of import structures in Indonesia on economic growth during the period 1997-2018. The analysis of this research is conducted by applying descriptive qualitative analysis. During the study period, it was found that the structure of imports that contributed a lot to total imports in a row was imports of raw materials followed by imports of capital goods after that import of consumer goods. Furthermore, the share of the import structure in Indonesia towards Gross Domestic Product (GDP), whose major role is the import of raw/auxiliary materials followed by imports of capital goods and then imports of consumer goods. So it can be concluded that Indonesia's dependence on imported goods is still very high, especially imports of raw materials and capital goods.

Highlights

The growth of global trade is currently quite good and in line with the increasing tension of trade among the world's largest economies and tightening monetary conditions that increase financial fragility in some developing countries
The variables used in this study are Import of Raw Materials, Import of Consumable Goods, Import of Capital Goods and one indicator of economic growth is national income / Gross Domestic Product (GDP) which is the value of goods and services produced by an economy in a certain period of time in an open economic system
The structure of imports consisting of imports of raw materials, consumer goods and capital goods made a significant contribution

Summary

Introduction

The growth of global trade is currently quite good and in line with the increasing tension of trade among the world's largest economies and tightening monetary conditions that increase financial fragility in some developing countries. The performance of global trade peaked in 2017, growing by 5.3 percent in terms of volume, which is based on the average growth, observed in the last half decade. The slowdown was mainly driven by rising demand for weaker merchandise imports in most developed countries. In Asia, trade growth remained more resilient. East Asia has benefited from strong global demand for electronics, increasing intraregional trade, given the region's deep integration into the global industrial production network. Global trade in services continues to grow faster than trade in goods, up more than 10 percent in value in the first half of 2018 (United Nations, 2019)

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