Indonesia-India Bilateral Trade Hits USD 29.4 Billion in 2024
Bilateral trade between India and Indonesia reached USD 29.4 billion in FY2023-24, with Indonesia ranking as India’s 8th largest trading partner.
Mumbai, 24 December 2024: –Indonesia’s GDP growth is expected to sustain at 5.1% in 2025, signalling robust growth driven by targeted investments, trade expansion, and value-added policies. Inflation, a critical marker of stability, has been effectively contained, with a record low of 1.71% in October 2024. This is the key finding on an industry report by Rubix Data Sciences, a company providing groundbreaking innovations in risk management and business intelligence.
The report offers an in-depth analysis of Indonesia’s vibrant economic landscape, trade relations, sectoral developments, and infrastructure projects, with actionable insights and critical data for decision-makers worldwide.
Indonesia, according to the report, remains a global nickel leader, and is on track to supply a staggering 62% of the world’s nickel by 2028. With this, it is also aiming to cement its status as a key player in Electric Vehicle (EV) and battery manufacturing, as nickel is a key component in these industries. Strategic export bans on raw nickel and bauxite have attracted over USD 30 billion in investments, primarily from China, driving a surge in domestic value addition.
Another key highlight points to the fact that Indonesia has recorded its 53rd consecutive monthly trade surplus in September 2024, showcasing exceptional trade management. Non-oil and gas exports—led by mineral fuels, vegetable oils, and iron and steel—continue to dominate, even as global commodity price fluctuations demand diversification.
With a 75% reduction in deforestation since 2019, bold green energy projects, and the ambitious Vision 2045 plan, Indonesia is balancing industrialisation with sustainability to secure its place as a global leader in climate-conscious economic growth.
India-Indonesia Relations: A Growing Strategic Partnership
Bilateral trade between India and Indonesia reached USD 29.4 billion in FY2023-24, with Indonesia ranking as India’s 8th largest trading partner. India is Indonesia’s second-largest buyer of coal and crude palm oil, highlighting the strategic importance of this partnership.
India’s exports to Indonesia totalled USD 5.99 billion in FY2024, with mineral fuels and vehicles among the top traded goods.
Indonesia’s investments in India, cumulatively valued at USD 653.83 million, span sectors such as automotive, pharmaceuticals, and banking.
Collaborative initiatives, including energy and technology agreements, further deepen ties, paving the way for mutual growth.
What Does This Mean for Businesses?
The report identifies Indonesia as a land of unparalleled opportunity. From its burgeoning EV sector to policy reforms fostering foreign investment, businesses can capitalise on Indonesia’s strategic initiatives to expand their global footprint.
“Indonesia’s economic evolution is a story of resilience, agility, and strategic policy”, said Mohan Ramaswamy, Co-founder & CEO of Rubix Data Sciences. “This report provides the roadmap businesses need to navigate and succeed in one of Southeast Asia’s most promising markets and ASEAN’s largest economy.
Exports to China accounted for 25% of Indonesia’s total exports in 2023, making it the top trading
partner, followed by the US and Japan. However, dependency on China poses risks, as slowing Chinese growth led to a 16.24% decline in Indonesian exports to the country in Q1 2024.
Foreign direct investment has notably increased, reflecting international confidence in Indonesia’s economic stability and high-return potential. This growth in investment is partly attributed to Indonesia’s involvement in the Regional Comprehensive Economic Partnership, which has improved access to global supply chains. The emphasis on infrastructure development,
with substantial investments in roads, ports, airports, and digital connectivity, aims to reduce logistical costs and open new markets, further stimulating economic activities.
As Indonesia approaches the completion of its 20-year development plan in 2025, there is a strategic focus on increasing self-reliance and boosting competitiveness on the global stage. This includes fostering a robust economy that benefits both domestic and international stakeholders and implementing comprehensive tax reforms.
