11.11 Alibaba Promo Boosts Indonesia`s Consumer Goods Imports

TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Darmin Nasution said Indonesia experienced a sudden increase in consumer goods import this year. The hike, he said, was triggered by digital shopping transaction or e-commerce.

The former governor of Bank Indonesia deemed shopping promo initiated by Alibaba in China increased the shopping interest of Indonesian people. “During Alibaba event in China (singles day), I think many Indonesians make purchases, but that’s okay,” said Darmin in Raffles Hotel, Wednesday, November 28.

However, as seen from the statistics, the import of consumer goods had lower portion than raw materials and capital goods for the industry sector. Based on the ministry's notes, 70 to 75 percent of the country’s imports was raw materials, capital goods at 20 percent, while consumer goods recorded at 10 percent.

Read: Indonesian Products Participate in Alibaba Shopping Festival 

Alibaba Group Holding Limited earlier reported that the Single Day 11.11 event had collected RMB 213.5 billion or US$ 30.8 billion or equal to Rp450 trillion of Gross Merchandise Volume (GMV). It did not mention the transaction amount from Indonesia.

The government is currently struggling to deal with the import as it affected the country’s current account deficit. According to Minister Darmin, the issue was one of the difficulties that could not be solved within a short period.

The government has released several policies to suppress imports by for example expanding the mandatory of biodiesel B20 and increasing import tax of several consumer goods. On the other hand, the government also strived to boost export, fixed perception, and improved market sentiments. Thus, many investments would begin to return to the country.

CAESAR AKBAR