Import Unit Value Index 2019

The import commodity price index in general is a description of the development of Indonesia's imported commodity prices per unit weight (kg). The import commodity price index is used, among others, to calculate GDP at constant prices, especially in the import component, and to calculate the exchange rate of trade by comparing the development of the export and import commodity price indices. The import price index is compiled based on the calculation of the price index according to the eight-digit Harmonized System (HS) item code, then aggregated and presented in the oil and gas, non-oil and gas groups, total imports, the oil and gas sub-group, and the two-digit non-oil and gas HS group. The 2019 import commodity price index uses the 2018 base year (2018 = 100). The commodity price is calculated by dividing the CIF value (USD) by the weight of the item (kg). Commodities used in calculating the import unit value index must meet several requirements, namely the frequency of import transactions of at least 8 months in 2018 and a minimum of 16 months in 2017 and 2019; and a closeness percentage of more than 60 percent during January 2017-December 2019. After the 8 digit HS commodity sample is selected, the next requirement that must also be met is the cumulative role of the selected commodity in its group / sub-group of at least 75 percent. The formula used in calculating the import unit value index number is the Fisher Index. Care is needed in interpreting the import unit value index numbers. An increase or decrease in the index of a group / sub-group of imported goods does not merely indicate an increase or decrease in prices. The increase or decrease in the index number can come from the heterogeneity of the unit value data in groups / subgroups. Heterogeneity can be caused by the large composition of goods in the 8 digit HS commodity, it can also be caused by differences in the quality of the goods and the country of origin of the goods.