Indonesia, a thriving Southeast Asian nation, boasts a robust export sector that significantly impacts its economy. As of recent data, the country exported goods worth approximately USD 236.41 billion in 2023, reflecting its position as a major player in the global market. With a diverse range of export commodities, Indonesia’s economic health is closely linked to its export performance. Let’s delve into what Indonesia’s biggest export is and how it influences the global market.
Also read: Major Industries in Indonesia (Based on Contribution to GDP)
The Leading Export: Mineral Fuels
Indonesia’s most significant export is mineral fuels, including oil. In 2023, this category accounted for a substantial USD 59.5 billion, representing 23% of the country’s total exports. This category includes coal, crude oil, and natural gas. The nation’s abundant natural resources and strategic positioning contribute to its dominance in this sector.
Coal
Among the mineral fuels, coal stands out as a key export. Indonesia is one of the world’s largest exporters of thermal coal, crucial for power generation in many countries. In April 2024, coal exports saw a slight increase of 1.84% compared to the previous month, highlighting its ongoing importance in Indonesia’s export portfolio.
Also read: Indonesia’s Coal Industry: Outlook and Potential
Natural Gas
Another critical component of Indonesia’s mineral fuel exports is natural gas. The country produces about 75.0 billion cubic meters annually, contributing significantly to the global supply. This export is vital for energy-hungry nations and underscores Indonesia’s role in the global energy market.
Also read: Mining Industry in Indonesia: Outlook and Potential
Other Major Exports
While mineral fuels lead, several other commodities play a crucial role in Indonesia’s export economy:
- Palm Oil: Indonesia is the world’s largest producer and exporter of palm oil, with more than 46 million tonnes exported annually. This versatile product is used in food, cosmetics, and biofuels. Despite recent price drops, palm oil remains a major export.
- Electronics: Electronics and electrical machinery are significant export categories. In 2023, this sector contributed USD 14.3 billion to the export economy, reflecting Indonesia’s growing industrial capacity.
- Textiles and Footwear: The textiles and footwear industries are also prominent in Indonesia’s export landscape, with textiles alone reaching USD 3 billion in exports. These industries benefit from the nation’s established manufacturing capabilities and competitive pricing. (check: Indonesia Textile Industry: Outlook and Opportunities)
Export Trends and Market Insights
Recent data indicates that while Indonesia’s overall export value has seen fluctuations, the country remains a key global exporter in several sectors. For instance, in April 2024, Indonesia’s total export value was USD 19.62 billion, reflecting a monthly decline but an annual increase.
Additionally, the sectoral distribution shows that industrial processing exports lead with USD 14 billion, followed by mining and other sectors.
Indonesia’s export economy is dominated by mineral fuels, with coal and natural gas being key contributors. However, the country’s diverse export portfolio includes significant contributions from palm oil, electronics, textiles, and footwear. Understanding these trends and export values provides insight into Indonesia’s economic strengths and its pivotal role in global trade.
Also read: Indonesia’s Special Economic Zones (SEZs): A Complete Guide
For more information on Indonesia’s export regulations, you can consult for FREE with InvestinAsia’s legal team.
Then, for businesses who want to export from Indonesia, you can rely on InvestinAsia’s Indonesia Export License Services to take care of the licensing.
More than that, we also provides various services related to business in Indonesia. InvestinAsia is among the companies that specialize in aiding you with company registration Indonesia. We boast a team of seasoned experts who can guide you throughout the process of:
- PMA registration in Indonesia (Foreign Company)
- Representative office registration in Indonesia
- Indonesia Local PT PMDN Set Up
- Indonesian Virtual office setup
- Business registration number in Indonesia
- Business Licenses in Indonesia
- Trademark Registration in Indonesia
- Franchise License in Indonesia
If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.
FAQs About Indonesia’s Biggest Export
1. What is Indonesia’s top export?
Indonesia’s largest export is mineral fuels, including coal and natural gas, which together accounted for USD 59.5 billion in 2023, or 23% of total exports.
2. How significant is palm oil in Indonesia’s export economy?
Palm oil is a major export for Indonesia, with over 46 million tonnes shipped annually. Despite recent price drops, it remains a key export. (check: Palm Oil Industry in Indonesia: Outlook and Opportunities)
3. What other major commodities does Indonesia export?
Other significant exports include:
- Electronics: USD 14.3 billion.
- Textiles: USD 3 billion.
- Footwear: USD 6.17 billion.
Also read: Indonesia Negative Investment List (DNI): Latest Update
4. How did Indonesia’s export values perform recently?
In April 2024, Indonesia’s total exports were USD 19.62 billion, down from March but up from the previous year.
5. What are the main destinations for Indonesian exports?
Key export destinations include China, India, the United States, ASEAN countries, and the European Union.
Also read: Indonesia’s Top Trading Partners (Export-Import)
6. How does Indonesia’s export sector impact its economy?
Indonesia’s export sector is crucial, contributing significantly to GDP through its diverse range of exports.
7. What recent trends have been observed in Indonesia’s export data?
Recent data shows fluctuations in export values, with a decrease in April 2024 compared to March but an increase from the previous year.
8. How does Indonesia’s export performance compare to previous years?
In 2023, Indonesia’s exports totaled USD 236.41 billion, down from USD 291.90 billion the previous year, though export volume increased.
Source:
