Indonesia

📊 Overview

Indonesia stands as the world's #27 largest exporter and #28 largest importer, demonstrating substantial regional trade importance.

The trade profile reveals a robust surplus of 70.52 billion, indicating strong export competitiveness.

The country maintains active trading relationships with 20 major partners, creating a highly diversified trade network.

Monthly trade flows average $42.37B, generating continuous economic activity across logistics, finance, and trade services.

🚢 Export Markets

Export concentration shows China as the dominant market at 23.4%. The top three markets control 40.6% of exports.

Regional patterns reveal strong East Asian integration. Secondary markets (Malaysia, Philippines, Rep. of Korea) provide $50.95B in additional trade.

📦 Import Sources

Indonesia relies heavily on China for imports (28.5%),creating supply chain concentration risk.

Energy suppliers including Saudi Arabia (4.09B), United Arab Emirates (2.44B) collectively provide 6.53 billion or 3.0% of imports, highlighting the economy's dependence on imported energy resources.

Manufacturing inputs come primarily from China, Malaysia, Rep. of Korea, Thailand, reflecting deep integration into Asian production networks. China's dominant position at 62.47 billion encompasses electronics components, textiles, machinery parts, and consumer goods, creating both efficiency benefits and concentration risks.

The USA provides 10.73 billion (4.9%) in imports, concentrated in agricultural products, aircraft, pharmaceuticals, and advanced technology.The top 10 import sources account for 74.0% of total imports, with the remaining 26% distributed among 10 other suppliers.

Regional sourcing patterns reveal strong ASEAN integration with 4 Southeast Asian nations providing 46.05 billion (21.0%) of imports. European suppliers including Germany (4.15B) focus on luxury goods, machinery, and specialized chemicals.

Supply chain resilience strategies increasingly emphasize "China Plus One" approaches, with Thailand, India, Viet Namemerging as alternative manufacturing bases. The geographic proximity of major suppliers balances efficiency with risk diversification.

📦 Product Composition

🚀 Export Products

Indonesia's export economy centers on diversified industrial production, with the leading export being (other than anthracite and bituminous), whether or not pulverised but not agglomeratedat $26.62 billion, accounting for 9.2% of total exports.

Vehicle-related products including passenger cars, hybrid vehicles, electric vehicles, and automotive parts total approximately 3.64 billion or 1.3% of exports, encompassing 1 distinct product categories. Electronics, semiconductors, and machinery contribute 2.66 billion or 0.9% of exports.

The automotive sector's dominance is evident in the export portfolio, with with only spark-ignition internal combustion recip... (3.64B). This automotive specialization reflects decades of manufacturing excellence, continuous innovation in fuel efficiency and hybrid technology, and established global brand recognition.

The transition to electric and hybrid vehicles is captured in export data, with 0 categories specifically related to alternative propulsion systems, totaling $0.

Beyond automotive, Indonesia maintains strong positions in specialized equipment, electronic components (2.66B), and Coal, Vegetable oils, Ferro-alloys.

The top 20 export products collectively account for 48.1% of total exports, revealing healthy product diversification across multiple sectors.

🛒 Import Products

Energy dominates Indonesia's import profile, with fossil fuels accounting for 37.10 billion or 16.9% of total imports. Crude oil leads at 21.08 billion (9.6%), followed by natural gas and coal. This energy import dependency shapes economic policy, inflation dynamics, and strategic relationships with supplier nations.

Beyond energy, critical imports include wheat and meslin, other than durum wheat... (3.35B, 1.5%), whether or not ground or in the form of ... (2.61B, 1.2%), cane sugar, raw, in solid form, other th... (2.59B, 1.2%), gold, non-monetary, unwrought (but not p... (2.58B, 1.2%), parts (2.40B, 1.1%).Electronic components and devices total 8.13 billion (3.7% of imports), supporting domestic manufacturing and assembly operations. Metal ores and minerals contribute 1.13 billion (0.5%), feeding industrial processing capacity.

The import product mix reveals structural characteristics of Indonesia's economy: heavy reliance on imported energy despite industrial advancement, integration into global electronics supply chains, food security dependencies, and sophisticated consumption patterns.

The ratio of raw materials to finished goods in imports (11 : 9among top 20 products) indicates significant value-addition activities domestically. Import substitution potential exists in agriculture sectors through targeted industrial policies and investment.

Product diversification metrics reveal focused product specializationwith implications for economic resilience and growth potential. The technology ladder progression from 11 primary products to 2 high-tech goods indicates the economy's structural transformation and industrial upgrading trajectory.

Value addition opportunities exist in transitioning from raw material exports to processed goods, from components to finished products, and from standard to customized offerings. The product space connectivity, measuring relatedness between current exports and potential new products, suggests need for capability building to enter new product categories.

⚖️ Trade Balance Dynamics

Export-to-import ratio of 1.322 means exports cover 132.2% of import costs.

🔗 Key Relationships

The Indonesia-China relationship leads at 130.21 billion in bilateral trade.View detailed analysis →

Additional major partnerships include USA (37.39B total trade), Singapore (34.28B total trade), India (31.07B total trade). Regional integration through Asian supply chains facilitates technology transfer, market access, and production efficiency. The diversity of trading relationships—360.02B across top 10 partners—provides resilience against bilateral tensions and regional disruptions.

🏆 Competitive Position

Global rankings position Indonesia as the #27 exporter worldwide,within the major trading nations. The country's share of global exports at approximately 2.895%offers opportunities for market share expansion.

Export sophistication, measured by the dominance of primary commodities, indicates potential for value chain upgrading. The revealed comparative advantage (RCA) index shows strongest competitiveness in sectors where Indonesia's global market share exceeds its overall trade share by factors of 2 or more.

Competitive advantages emerge in sectors where export concentration exceeds import share, particularly in(other than anthracite an, palm oil and its fraction, ferro-nickel. The revealed comparative advantage is strongest in product categories representing21.5% of exports. Market positioning against regional competitors shows leadership in key product segments.

Trade complementarity with major partners suggests deep integration into global supply chains. The export quality ladder, comparing unit values to world averages, indicates competitive pricing strategies.

Competitive dynamics are shaped by factor endowments including advanced technology and skilled labor, infrastructure quality, and business environment. The export survival rate, measuring the persistence of export relationships over time, suggests need for relationship strengthening.

Innovation capacity, reflected in the technology content of exports and R&D intensity, determines long-term competitiveness trajectories. The competitive threat from emerging exporters in similar product categories requires continuous upgrading and differentiation strategies to maintain market position. Regional integration through trade agreements provides preferential access to0 markets, creating competitive advantages over non-member competitors.

🎯 Strategic Outlook

The trade profile presents both opportunities and challenges for economic development strategy. Key strengths include consistent trade surpluses supporting macroeconomic stability,diversified market access reducing concentration risk, and competitive positions in essential commodities.

Vulnerabilities include product concentration in cyclical sectors. The intersection of these factors creates a complex strategic landscape requiring careful navigation to maximize opportunities while mitigating risks.

Strategic priorities should focus on market diversification and value chain upgrading to enhance trade competitiveness. Opportunities exist in expanding trade with Other Asia, nes, Germany, Australia, developing new product capabilities in higher technology sectors, and strengthening regional integration through new partnership frameworks.

The digital transformation of trade, including e-commerce, digital services, and blockchain-based trade finance, offers new avenues for market access and efficiency gains. Green trade opportunities in renewable energy, sustainable products, and carbon markets represent growing segments aligned with global sustainability goals.

The evolving global trade environment, characterized by technological disruption, geopolitical realignment, and sustainability imperatives, will fundamentally reshape Indonesia's trade prospects. Success requires balanced policies addressing both maintaining export competitiveness while managing currency appreciation pressures.

Investment in infrastructure, education, and innovation ecosystems will determine the ability to climb value chains and capture larger shares of global value addition. The resilience agenda, emphasizing supply chain robustness, strategic autonomy in critical sectors, and economic security considerations, must be balanced with efficiency and openness principles.

As global trade patterns continue evolving, Indonesia's position as the world's #27 exporter provides a platform for continued growth, requiring adaptive strategies, institutional strengthening, and sustained commitment to competitiveness enhancement in an increasingly complex and interconnected global economy.