Electrical machinery and equipment are Indonesia’s second-largest non-oil and gas import commodities after mechanical equipment.
The import value of electrical machinery and equipment in 2021 reached USD 22.33 billion.
In fact, over the past several years, electrical machinery and equipment have consistently ranked among Indonesia’s top three non-oil and gas import commodities.
So, where do the electrical machinery and equipment imported into Indonesia come from?
This article discusses the five main countries of origin for electrical machinery and equipment imported into Indonesia.
Let’s take a closer look.
What Are Electrical Machinery and Equipment?
Electrical machinery and equipment are among the commodities imported into Indonesia.
This category consists of machinery and equipment that require electrical energy to operate.
It also includes:
- Sound recording and reproducing equipment
- Television image and sound recording and reproducing equipment
- Accessories for these products
Several types of electrical machinery and equipment are also classified as capital goods.
Capital goods are needed to support manufacturing activities in Indonesia.
Therefore, imports of machinery and equipment are necessary to support Indonesian industries, contributing to their relatively high import value.
Technological development may also be one of the reasons behind the high level of electrical machinery and equipment imports.
Technological advances have made many aspects of daily life increasingly dependent on electrical equipment.
The transfer of technology from more developed countries to Indonesia has also encouraged imports of electrical machinery and equipment.
Which Countries Are the Largest Sources of Electrical Machinery and Equipment Imports into Indonesia?
Based on the 2021 Indonesian Foreign Trade Statistics – Import Report, various countries supplied electrical machinery and equipment to Indonesia.
The following are the five countries with the largest volume of electrical machinery and equipment imports into Indonesia.
1. China
China ranked first as the largest country of origin for electrical machinery and equipment imported into Indonesia.
In 2021, Indonesia imported approximately:
905.2 thousand tons
of electrical machinery and equipment from China.
The import value during the same year reached:
USD 11.85 billion
This represented approximately 50% of Indonesia’s total import value for this commodity in 2021.
China was not only the largest supplier in 2021.
During the previous five-year period from 2017 to 2021, China remained the largest country of origin for Indonesia’s electrical machinery and equipment imports.
The import trend from China also continued to increase, except in 2020 due to the COVID-19 pandemic lockdown.
China is widely known for its large economic scale.
The country is capable of producing various products and commodities with relatively good quality while maintaining significantly lower prices.
2. Japan
Japan ranked second among the largest countries of origin for imported electrical machinery and equipment.
In 2021, the import volume from Japan reached:
61.9 thousand tons
The total import value was:
USD 1.28 billion
Japan is one of Asia’s developed countries with a modern manufacturing industry, particularly in the electronics sector.
Several well-known companies originating from Japan include:
- Sony
- Toshiba
- Hitachi
- Panasonic
- JVC
- Canon
- Other manufacturers
Therefore, it is not surprising that Indonesia imports a significant amount of electrical machinery and equipment from Japan.
3. Thailand
Thailand ranked third among the countries supplying the largest volume of electrical machinery and equipment to Indonesia.
As one of Indonesia’s fellow ASEAN countries, Thailand supplied approximately:
58.3 thousand tons
of electrical machinery and equipment to Indonesia in 2021.
The import value reached:
USD 729.0 billion
The volume of electrical machinery and equipment imported from Thailand in 2021 increased significantly compared with the previous four years.
Between 2017 and 2020, imports from Thailand averaged approximately:
34 thousand tons per year
The volume increased by approximately 24 thousand tons in 2021 compared with 2020.
Although the volume of electrical machinery and equipment imported from Thailand was relatively high, the import value from Thailand was the lowest compared with the other four countries:
- China
- Japan
- Singapore
- Vietnam
The import value from Thailand was approximately:
USD 12.5 million for every 1,000 tons of electrical machinery and equipment
Above Thailand was China, with a lower import value of:
USD 13.2 million for every 1,000 tons of commodities
This helps explain why Thailand ranked as the third-largest source of electrical machinery and equipment imports after China and Japan.
The commodity price per 1,000 tons was relatively lower compared with China.
4. Vietnam
The next country is Vietnam.
Vietnam ranked fourth among the countries whose electrical machinery and equipment were widely imported into Indonesia.
In 2021, the import volume of electrical machinery and equipment from Vietnam reached:
47.8 thousand tons
The import value reached:
USD 808.6 billion
Similar to Thailand, the volume of electrical machinery and equipment imported from Vietnam increased significantly compared with the previous four years.
From 2017 to 2020, Indonesia imported an average of approximately:
27.1 thousand tons per year
from Vietnam.
The 2021 figure increased by approximately 20% compared with the average import volume during the previous four years.
5. Singapore
Singapore ranked fifth among the largest suppliers of electrical machinery and equipment imported into Indonesia.
In 2021, the import volume from Singapore reached:
38.4 thousand tons
The import value reached:
USD 1.72 billion
Unlike Thailand and Vietnam, the volume of electrical machinery and equipment imported from Singapore declined in 2021.
In 2019, Indonesia imported approximately:
56 thousand tons
from Singapore.
This decreased to:
41.7 thousand tons in 2020
The import volume declined again in 2021 by approximately:
3.3 thousand tons
Import Services for Electrical Machinery and Equipment with PT. Alpha Romeo Teknologi
Those are the five countries that supplied the largest volume of electrical machinery and equipment imported into Indonesia.
Together, these five countries contributed approximately 89% of Indonesia’s total electrical machinery and equipment imports.
That is a significant contribution.
Did you know that based on Decree of the Minister of Finance of the Republic of Indonesia No. 23/KM.4/2022, there are at least 15 HS Codes for electrical machinery and equipment commodities whose imports are restricted by the government?
As a result, products subject to these restrictions are required to obtain:
- Import Licensing documents
- Surveyor Reports
before they can be imported into Indonesia.
However, you do not need to worry.
PT. Alpha Romeo Teknologi is ready to assist you in completing Import Licensing documents and/or Surveyor Reports for LARTAS goods.
We can also assist you with customs clearance services for your imported goods.
With PT. Alpha Romeo Teknologi, you do not need to handle complicated administrative documents yourself.
You can simply receive confirmation when your imported goods have been released from the port.
This allows you to focus on developing your business.
Interested in partnering with us or discussing your import requirements first?
Contact us now.