Import Unit Value Index 2020

In general, the import commodity price index is an illustration 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 trade exchange rate 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) goods code, then aggregated and presented in oil and gas, non-oil and gas groups, total imports, oil and gas sub-groups, and double-digit non-oil and gas HS groups. The 2020 import commodity price index uses the base year 2018 (2018=100). Commodity prices are 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 for a minimum of 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 fulfilled is the cumulative role of the selected commodity in its group/subgroup of at least 75 percent. The formula used in calculating the import unit value index is the Fisher Index. Caution is needed in interpreting imported unit value index figures. An increase or decrease in the index of a group/subgroup of imported goods does not merely indicate an increase or decrease in prices. The increase or decrease in index numbers can come from the heterogeneity of 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 goods and the country of origin of the goods.