Macroeconomic trade context

Annual trade volume, 2024

• Total trade: US$498.3 billion, ↑ 3.66% from 2023
• Exports: US$264.7 billion (Rp 4,335 trillion), ↑ 2.29% from 2023
• Imports: US$233.6 billion, ↑ 5.3% from 2023
• Trade balance: US$31.1 billion surplus, ↓ 15.78% from 2023
• Non-oil and gas surplus: US$51.44 billion
• Oil and gas deficit: US$20.4 billion
• Trade-to-GDP ratio: 35.6% (2024 estimate)
• Global rank: 27th largest exporter, 27th largest importer (2024)
• World export share: 1.1% (2024)
• Currency: Indonesian rupiah (IDR), US$1 ≈ IDR 16,380 (2024 average)
• Surplus record: five consecutive years of trade surplus since 2020

Geographic distribution, 2024 (non-oil and gas)

Export markets (US$248.8B non-oil and gas)

• High-growth export destinations in 2024: Eastern Europe (↑ 113.9%), Australia (↑ 60.6%) and the United States (↑ 20.4%)

Import origins (non-oil and gas)

Trade surplus by partner, 2024

• United States: +US$16.8 billion
• India: +US$15.3 billion
• Philippines: +US$8.8 billion

Sources: Trade Magazine (TAITRA) · ICE (Italian Trade Agency) · OEC

Detailed export product analysis

A. Mineral fuels and mining products: the dominant share

1. Coal: US$43.2B (est., 16.3% of total exports)

• Position: the world’s largest thermal coal exporter
• Production: 775 million tonnes (2024)
• Major buyers: China, India, Japan and South Korea
• Primary production regions: Kalimantan and Sumatra
• 2024 trend: export value fell 19.6% as prices normalised

2. Refined petroleum products: US$21.3B (8.0%)

• Export destinations: regional markets (ASEAN, East Asia)
• Products: gasoline, diesel, jet fuel and naphtha

3. Crude petroleum: US$9.9B (3.7%)

• Production: 600,000 barrels per day
• Export destinations: Japan, South Korea and Australia

4. Petroleum gas (LNG): US$3.7B (1.4%)

• Position: the world’s 9th largest LNG exporter
• Bontang LNG plant: East Kalimantan
• Tangguh LNG: Papua (expanding capacity)
• Major buyers: Japan, South Korea, China and Taiwan

5. Copper ores and concentrates: US$7.2B (est., 2.7%)

• Freeport Indonesia (Grasberg): the world’s largest gold mine and 2nd largest copper mine
• Export growth: +51% in 2024
• Major buyers: China, Japan and South Korea

6. Nickel products: US$6.5B (est., 2.5%)

• Position: the world’s largest nickel producer (50% of global supply)
• Export growth: +17% in 2024
• Shift from ore to processed products: NPI, ferronickel and MHP for batteries
• Major buyers: China (80%+), South Korea and Japan

B. Animal and vegetable oils, mainly palm oil (US$28.5B est., 10.8%)

1. Palm oil and fractions: US$24.8B (9.4%)

• Position: the world’s largest producer and exporter (60% of global supply)
• Production: 52 million tonnes (2024)
• 2024 trend: export value fell 11.7%; volume fell 17%
• Major buyers: India (25%), China (15%), EU (12%), Pakistan and Bangladesh

2. Palm oil derivatives

• Oleochemicals: fatty acids, fatty alcohols and glycerin
• Processed palm oil: refined, bleached and deodorised (RBD)

C. Electrical machinery and electronics (US$16.8B est., 6.3%)

1. Electrical machinery and equipment: US$8.2B (3.1%)

• Telephones and smartphones: US$6.7B
• Electronic components: US$3.2B
• Major manufacturers: Samsung, Panasonic, Sharp and LG
• Export destinations: USA, Japan, Singapore and ASEAN

2. Machinery and mechanical appliances: US$8.6B (3.2%)

D. Base metals and products (US$22.4B est., 8.5%)

1. Iron and steel: US$14.8B (5.6%)

• Stainless steel: from nickel processing (Morowali and Weda Bay industrial parks)
• Export growth in steel goods: +101% in 2024
• Major buyers: China, USA, Europe and ASEAN

2. Aluminium and articles: US$3.2B (1.2%)

• Export growth: +70% in 2024
• Inalum: the state-owned aluminium smelter

E. Vegetable products (US$13.2B est., 5.0%)

• Rubber and articles: US$5.8B (2.2%). The world’s 2nd largest natural rubber producer; major buyers are the USA, China, Japan and India
• Cocoa and preparations: US$1.2B (0.5%). Export growth of +118% in 2024; processing capacity is expanding in Sulawesi
• Coffee, tea and spices: US$1.8B (0.7%). The 4th largest robusta producer; speciality coffee is a growing premium segment
• Animal feed: US$2.4B (0.9%). Palm kernel expellers and fishmeal

F. Other exports

• Footwear: US$5.2B (2.0%). Suppliers to Nike, Adidas and Puma; concentrated in Banten and West Java
• Textiles and apparel: US$4.8B (1.8%). Facing competition from Vietnam and Bangladesh; exported to the USA, EU and Japan
• Furniture: US$2.2B (0.8%). Rattan furniture (the world’s largest rattan producer) and wood furniture (the Jepara carving centre)
• Paper and paperboard: US$3.5B (1.3%). Pulp and paper from Asia Pulp & Paper and APRIL; major buyers are China, Japan and South Korea
• Fishery products: US$4.2B (1.6%). Shrimp, tuna, crab and seaweed; aquaculture growth through shrimp farming expansion
• Precious metals and jewellery: US$2.8B (1.1%)

Sources: Trade Magazine (TAITRA) · OEC · ICE

Detailed import product analysis

A. Machinery and electrical equipment (US$60.6B, 25.9%)

1. Machinery and mechanical appliances (HS 84): US$33.5B (14.3%)

• Industrial machinery: US$12.4B
• Construction machinery: US$8.2B
• Agricultural machinery: US$4.1B
• Power generation equipment: US$3.8B
• Pumps and compressors: US$2.5B
• Primary sources: China (45%), Japan (18%), South Korea (12%) and Germany (8%)

2. Electrical machinery and equipment (HS 85): US$27.0B (11.6%)

• Telecommunications equipment: US$8.2B
• Semiconductors and integrated circuits: US$6.5B
• Household appliances: US$3.8B
• Electronic components: US$4.2B
• Primary sources: China (55%), Singapore (15%), Japan (12%) and South Korea (8%)

B. Mineral fuels (HS 27): US$40.7B, 17.4%

• Refined petroleum: US$21.3B (9.1%). Diesel and gasoil US$8.2B; gasoline US$7.5B; jet fuel and kerosene US$2.1B; fuel oils US$1.8B
• Crude petroleum: US$10.0B (4.3%). Primary sources are Saudi Arabia, the UAE, Nigeria and Angola
• Petroleum gas (LNG/LPG): US$3.7B (1.6%). LPG imports are growing because of the domestic conversion programme
• Coal and coke: US$2.8B (1.2%)

C. Base metals (HS 72–73, 76): US$17.1B, 7.3%

• Iron and steel (HS 72): US$10.7B (4.6%). Flat-rolled products US$4.2B; bars and rods US$2.8B; stainless steel US$1.5B; primary sources are China (60%), Japan (15%) and South Korea (10%)
• Articles of iron or steel (HS 73): US$4.2B (1.8%). Structures and parts US$1.5B; tubes and pipes US$1.2B; other fabricated products US$1.5B
• Aluminium and articles (HS 76): US$2.2B (0.9%). Primary sources are China, Australia and Malaysia

D. Chemicals and plastics (HS 28–40): US$32.3B, 13.8%

• Plastics and articles (HS 39): US$10.6B (4.5%). Plastics in primary forms US$5.2B; plastic articles US$3.8B; primary sources are China, South Korea, Japan and Singapore
• Organic chemicals (HS 29): US$7.1B (3.0%). Petrochemical feedstocks; primary sources are China, the USA and South Korea
• Fertilisers (HS 31): US$2.0B (0.9%). The government fertiliser subsidy programme allocated 9.5 million tonnes for 2025; subsidised fertilisers are urea, NPK, organic, SP-36 and ZA; primary sources are China, Russia and Canada
• Inorganic chemicals (HS 28): US$3.0B (1.3%)
• Miscellaneous chemicals (HS 38): US$3.7B (1.6%)
• Pharmaceutical products: US$2.1B (0.9%)

E. Vehicles and transport equipment (HS 87): US$9.7B, 4.1%

• Passenger vehicles (CKD and CBU): US$5.2B. CKD parts for local assembly (Toyota, Daihatsu, Mitsubishi, Honda); CBU imports of premium brands (Mercedes, BMW, Lexus)
• Commercial vehicles: US$2.1B
• Parts and accessories: US$2.4B

F. Food and agricultural products: US$18.5B, 7.9%

• Cereals (HS 10): US$6.8B (2.9%). Wheat US$3.2B (no domestic production); rice US$2.7B (the world’s largest rice importer); corn US$0.9B (for animal feed)
• Sugars and confectionery (HS 17): US$3.6B (1.5%). Raw sugar US$2.8B (the world’s largest raw sugar importer); refined sugar US$0.8B
• Oil seeds and oleaginous fruits (HS 12): US$1.9B (0.8%). Soybeans US$1.2B (for the tempeh and tofu industry); the primary source is the USA (over 2 million tonnes in 2022)
• Residues and animal feed (HS 23): US$3.8B (1.6%). Soybean meal and corn gluten feed for the livestock and aquaculture industries
• Dairy products: US$1.8B (0.8%). 80% of domestic needs are imported; the world’s 3rd largest skim milk powder importer; products are SMP, WMP, whey, lactose and cheese; primary sources are New Zealand, the USA, Australia and the EU
• Beef and bovine products: US$1.2B (0.5%). Imports of 307,825 tonnes in 2023, the highest in years; 2024 quotas were reduced to 145,250 tonnes because of licensing delays; primary sources are Australia (55%), India (buffalo meat, 25%) and the USA (7%)
• Fresh fruits: US$1.3B (0.6%). Apples, pears, grapes and citrus (89% of imports); primary sources are China, the USA, Australia and New Zealand
• Processed vegetables, including French fries: US$0.9B (0.4%). French fries imports rose 26% in 2023; sources are Belgium (31%), the USA (21%), China (18%) and the Netherlands (16%)
• Snack foods: a growing premium segment

G. Other import categories

Sources: ITC Trade Map · OEC · US Commercial Service, agriculture guide

Trade procedures and regulations: deep dive

A. Customs declaration process

1. Regulatory framework

• Primary authority: Directorate General of Customs and Excise (DGCE), under the Ministry of Finance
• Legal basis: Customs Law No. 17/2006 and various Minister of Trade regulations
• Latest updates: Minister of Trade Regulation No. 37 of 2025 (MOT Reg. 37/2025)
• Trade agreements: ASEAN Free Trade Area (AFTA), with 99% of products duty-free within ASEAN; ASEAN–China FTA (ACFTA); ASEAN–Korea FTA (AKFTA); ASEAN–Japan CEP (AJCEP); ASEAN–India FTA (AIFTA); ASEAN–Australia–New Zealand FTA (AANZFTA); Regional Comprehensive Economic Partnership (RCEP); Indonesia–Japan EPA (IJEPA); Indonesia–Korea Comprehensive Economic Partnership Agreement (IK-CEPA)
• Currency: a managed float, with a historically interventionist central bank

2. Importer Identification Number (API) system

• API-U (General Importer Identification Number): for importing finished goods for resale or trade
• API-P (Producer Importer Identification Number): for importing raw materials, components and semi-finished goods for use in manufacturing
• A company may hold only one API (either API-U or API-P)
• An API-U may be converted to an API-P, but conversion from API-P to API-U is not allowed
• API revocation is a one-time, irreversible process
• Goods imported under an API-P may not be traded, even after revocation
• Registration (electronic): through the Online Single Submission (OSS) system; the Business Identification Number (NIB) functions as the API; validation is through INATRADE, the Ministry of Trade’s electronic trade licensing and monitoring platform, which is integrated with OSS

3. Import prohibitions and restrictions

Absolutely prohibited imports

• Narcotics and psychotropic substances
• Hazardous and toxic waste
• Certain chemicals (ozone-depleting substances)
• Pornographic materials
• Weapons and explosives without a licence
• Certain used goods (clothing, bags, electronics)

Restricted or regulated goods (additional permits required)

• Food and beverages: BPOM (National Agency of Drug and Food Control) registration
• Pharmaceuticals and cosmetics: BPOM approval and GMP certification
• Plants and animals: Ministry of Agriculture quarantine permits
• Rice and sugar: special import approvals from the Ministry of Trade
• Textiles, electronics and footwear: technical regulations and SNI (Indonesian National Standard) certification
• Alcoholic beverages: special import licences and high duties
• Hazardous materials: Ministry of Environment permits
• Telecommunications equipment: type approval from the Ministry of Communication and Informatics

4. Regulatory changes, 2025

• MOT Regulation No. 16 of 2025 (effective 30 August 2025): revoked and replaced MOT Reg. 36/2023; streamlined the import licensing framework; improved transparency in licensing; introduced structured sanctions; set new importing timelines
• MOT Regulation No. 37 of 2025 (enacted 22 October 2025), API conversion: electronic, through the OSS system, with documentary requirements
• API revocation: a one-time, irreversible electronic declaration through OSS; after revocation, API-U goods may still be traded but API-P goods may not
• Verification and technical inspection: no longer carried out in the country of origin; now carried out at bonded logistics centres, free trade zones and free ports within Indonesia, giving closer regulatory supervision and more effective compliance monitoring
• Surveyor reporting: valid for a single shipment; submitted electronically through INATRADE and transmitted automatically to the Indonesia National Single Window (SINSW)
• Expanded data requirements: HS code, port of loading, bonded warehouse ID (TPB) and KITE details (the import facility for export purposes)

Sources: SSEK Law Firm · vLex

5. Customs declaration timeline

• Pre-shipment: obtain the necessary permits (BPOM, quarantine and so on), 2–8 weeks depending on the product
• Document submission: through INSW before the cargo arrives
• Customs clearance at the port: 3–7 days in the green lane, 7–14 days in the red lane
• Tanjung Priok Port (Jakarta): 4–8 days on average
• Tanjung Perak Port (Surabaya): 3–7 days on average
• Belawan Port (Medan): 3–7 days on average
• Import approval validity: typically 6–12 months, depending on the product category; surveyor reports are valid for a single shipment

6. Required documentation

1. Pro forma invoice
2. Commercial invoice (in English, detailed)
3. Bill of lading or air waybill (original or electronic)
4. Packing list
5. Certificate of origin (for preferential tariff claims)
6. Insurance certificate
7. Import declaration (PIB), electronic through INSW

Additional documents, where applicable

• BPOM registration number: food, drugs and cosmetics
• Quarantine release certificate: plants, animals and fish
• SNI certificate: products with mandatory standards
• Surveyor report (Laporan Surveyor, LS)
• Technical approval: from the relevant ministry
• KITE approval: for export-oriented manufacturing
• Recommendation letter: from the relevant technical ministry

7. Customs valuation

• WTO valuation method: transaction value basis (CIF)
• Additions: commissions, assists, royalties, transport and insurance
• Currency conversion: based on prevailing Bank Indonesia rates
• Related-party transactions: must demonstrate arm’s length pricing

8. Electronic systems

• Indonesia National Single Window (INSW): a single submission point for all trade documents; integrated with 35+ government agencies; Electronic Data Interchange (EDI) formats required; standardised submission before cargo arrival
• INATRADE: the Ministry of Trade’s electronic licensing platform; integrated with OSS for API management; used for import approval applications
• Online Single Submission (OSS): the business licensing platform; API registration and conversion; NIB issuance

B. Taxation and duties

1. Customs duties structure

• MFN applied tariffs: simple average 7.6% (2024); trade-weighted average 3.5%; 56% of tariff lines duty-free
• ASEAN-6 (AFTA): 0% on 99% of tariff lines for intra-ASEAN trade
• FTA partners: varying preferences under bilateral and regional FTAs
• RCEP: progressive liberalisation

2. Value-added tax (VAT, PPN)

• Standard rate: 11% (2024); an increase to 12% was scheduled for 2025 at the time of writing
• Zero-rated: exports and certain international services
• Exempt: essential goods (rice, corn, soybeans and so on), educational services and health services
• Registration threshold: IDR 4.8 billion annual turnover
• VAT on imports: due on customs clearance (import VAT)

3. Luxury goods sales tax (PPnBM)

• Applied to: luxury vehicles, electronics, household appliances and certain foods and beverages
• Rates: 10% to 200%, depending on the product category
• High rates on: large-engine vehicles (up to 125%)

4. Excise duties

• Alcoholic beverages: high rates (Rp 15,000–139,000 per litre)
• Tobacco products: a complex tiered system based on production type and volume
• Ethyl alcohol
• Sweetened beverages: a new excise (proposed)

5. Import duty exemptions and incentives

• KITE (Kemudahan Impor Tujuan Ekspor, import facility for export purposes): for export-oriented manufacturers; duty-free import of raw materials and components; minimum export requirement of 50%; simplified procedures
• Bonded zone / KITE facility: manufacturing in bonded zones; duty and VAT suspension; for production with a significant export component
• BKPM (Investment Coordinating Board) incentives: tax holidays for pioneer industries (5–20 years); tax allowances for certain sectors; import duty exemptions for machinery and equipment

C. Special customs regimes

• Bonded logistics centres: in-country inspection points for verification and technical inspection (under MOT Reg. 37/2025); storage without paying duty; for re-export or later local release; closer regulatory supervision
• Free trade zones and free ports: the Batam, Bintan and Karimun (BBK) free trade zones and the Sabang free port; duty-free imports, simplified procedures and no VAT on certain transactions; they now serve as inspection points for the verification of imported goods
• Bonded warehouses (TPB, Tempat Penimbunan Berikat): storage of imported goods without paying duty; time limits of typically up to 3 years; for re-export, re-import or later local release after duty payment; electronic reporting through INSW
• Temporary importation: for exhibitions, professional equipment, samples and re-export purposes; requires a guarantee (bank guarantee or insurance bond); maximum period of 6 months (extendable to 12 months); goods must be re-exported or duties become payable
• ATA Carnet system: for the temporary admission of professional equipment, commercial samples and exhibition goods; issued by Kadin (Indonesian Chamber of Commerce); no duties or bonds required; limited acceptance among participating countries (check with Kadin)

D. Sector-specific regulations

1. Food and beverage products

• BPOM registration: mandatory for all processed food, beverages and supplements; MD registration for locally produced foods and ML registration for imported foods; processing takes 4–12 weeks, depending on the risk category; valid for 5 years (renewable); requires product specifications, a factory GMP certificate, an ingredient list, lab test results and label samples
• Labelling: Indonesian language is mandatory for all food products. Required information: product name; ingredients list; net weight or volume; nutritional information; halal certification (for products claiming halal); BPOM registration number; manufacturer or importer name and address; expiry date; storage instructions. Non-compliance leads to detention, refusal or seizure at customs
• Halal certification: mandatory for all food, beverages, cosmetics and pharmaceuticals (phased in over 2024–2026); issued by BPJPH (Halal Product Assurance Agency); certification bodies include MUI and LPPOM MUI
• Import quarantine: for plants, animals, fish and their products; issued by the Indonesian Quarantine Agency (IQA), merged from IAQA and IFQA in 2022; phytosanitary or sanitary certificates are required from the country of origin; quarantine inspection on arrival

2. Pharmaceutical products

• BPOM approval: product registration is required for all pharmaceuticals, traditional medicines and cosmetics; valid for 5 years (renewable); requires GMP certification, a product dossier and clinical trial data (for new drugs)
• Import licence: a separate import approval from BPOM for each product or shipment; Good Distribution Practice (GDP) certification is required for distributors

3. Cosmetics

• BPOM notification: a notification system (simpler than pharmaceutical registration); online submission through BPOM’s online notification system; processing takes 3–14 days; valid for 3 years (renewable); requires product specifications, a GMP certificate, a safety assessment and label samples

4. Electronics and electrical equipment

• SNI (Indonesian National Standard) certification: mandatory for 250+ product categories; testing by accredited labs (in Indonesia or recognised foreign labs); certification bodies are LSPro (product certification bodies); the SNI logo is required on the product or label
• Post-clearance audit: risk-based selection, document verification and physical inspection for red-lane cargo

5. Automotive sector

• CKD/SKD import approval: for local assembly and manufacturing; approval from the Ministry of Industry; local content requirements under the car manufacturing programme
• CBU import restrictions: high duties (30–80% plus luxury tax); import licences required; technical approvals from the Ministry of Transportation

6. Telecommunications equipment

• Type approval (Postel): issued by the Ministry of Communication and Informatics; testing by designated labs; certification is required for all telecom devices (phones, modems, routers and so on)

7. Chemicals and hazardous materials

• Ministry of Environment permits: for the import of hazardous and toxic substances (B3); technical recommendations required; storage and handling permits

8. Textiles and textile products

• Technical regulations: SNI for certain products (children’s clothing, fabrics); import licensing (special approval from the Ministry of Trade); quota restrictions for certain categories under safeguard measures

Sources: US Commercial Service, import requirements · US Commercial Service, agriculture guide

E. Compliance and enforcement

1. Customs inspection channels

2. Post-clearance audit

• Selection: risk-based, of importers and exporters
• Audit focus: valuation accuracy, classification, origin claims and VAT compliance
• Record keeping: a minimum of 10 years
• Audit outcomes: additional assessments, penalties or clearance

3. Offences and penalties

• Under-declaration: a penalty of up to 100% of the duty underpaid, plus fines
• Misclassification: duty adjustment plus administrative fines
• False documentation: criminal prosecution possible; fines of up to IDR 5 billion
• Smuggling: imprisonment of up to 10 years, plus fines of up to IDR 5 billion
• Import without a proper API: goods confiscated, plus fines
• API-U goods imported under an API-P: treated as a violation, with penalties
• Permit violations: suspension or revocation of import facilities

4. Sanctions under MOT Reg. 16/2025

• A structured and expanded sanctions framework
• Progressive penalties for repeat violations
• Suspension or revocation of import facilities

Trade agreements network

A. Multilateral agreements

• WTO: member since 1995
• ASEAN Free Trade Area (AFTA): since 1992; 99% of products duty-free within ASEAN
• ASEAN+1 FTAs: China, Korea, Japan, India, Australia–New Zealand and Hong Kong
• Regional Comprehensive Economic Partnership (RCEP): 2022
• WTO Trade Facilitation Agreement: ratified

B. Bilateral FTAs and EPAs

C. Rules of origin

• Wholly obtained or produced: for natural resources
• Substantial transformation: change in tariff classification (CTC) at HS 4–6 digit level; regional value content (RVC) of 40% (ASEAN) or higher under other FTAs; specific process rules for certain products
• ASEAN (ATIGA) rules: RVC 40% or CTC; cumulation across ASEAN member states; self-certification for approved exporters
• Certificate of origin forms: Form D for ASEAN (ATIGA); Form E for ASEAN–China (ACFTA); Form AK for ASEAN–Korea (AKFTA); specific formats for IJEPA, IK-CEPA, IA-CEPA and RCEP

Major trade infrastructure

A. Ports

Java

• Tanjung Priok (Jakarta): Indonesia’s largest port, 7.6 million TEU (2024); handles 60% of Indonesia’s international trade; New Priok Container Terminal (Kalibaru) expansion
• Tanjung Perak (Surabaya): 2.8 million TEU; the second largest port, serving eastern Java
• Ciwandan (Banten): a new port, supporting Merak

Sumatra

• Belawan (Medan): 1.2 million TEU
• Kuala Tanjung (North Sumatra): deep-sea port development
• Bakauheni (Lampung): ferry port for the Sumatra–Java connection
• Palembang Port: river port for southern Sumatra

Kalimantan

• Balikpapan Port: oil and gas, coal
• Samarinda Port: coal barges

Sulawesi

• Makassar Port: 500,000 TEU, the hub for eastern Indonesia
• Bitung Port: North Sulawesi, developing as an international hub

Papua

• Amamapare: Freeport copper concentrate exports
• Jayapura Port: regional trade with Papua New Guinea

Industrial ports

• Morowali Industrial Park: nickel processing and stainless steel exports
• Weda Bay Industrial Park: nickel processing
• Bintan Industrial Estate: aluminium smelting

B. Airports (cargo volume)

C. Free trade zones

• Batam FTZ: the largest FTZ; electronics manufacturing
• Bintan FTZ: industry and tourism
• Karimun FTZ: shipbuilding and repair
• Sabang FTZ: the western gateway FTZ (developing)
• Benefits: duty-free imports, VAT exemption and simplified procedures; the zones now also serve as inspection points

D. Industrial parks and special economic zones (SEZs)

• Morowali Industrial Park: nickel processing SEZ
• Weda Bay Industrial Park: nickel SEZ
• Sei Mangkei SEZ: palm oil downstream industries
• Bitung SEZ: fisheries processing
• Palu SEZ: processing industries
• Galang Batang SEZ: bauxite processing
• KEK Mandalika: tourism SEZ
• KEK Tanjung Lesung: tourism SEZ

E. Logistics hubs

• Cakung Logistic Center (Jakarta)
• Surabaya Industrial Estate Rungkut (SIER)
• MM2100 Industrial Town (Cikarang)
• Delta Silicon Industrial Park (Cikarang)
• Bekasi International Industrial Estate

F. Land border crossing points

• Malaysia (Kalimantan): Entikong, Tebedu and Aruk
• Papua New Guinea: Skouw and Wutung
• Timor-Leste: Mota’ain and Wini

Emerging trends and future developments

A. Downstreaming (hilirisasi) policy

• Nickel ore export ban: fully implemented (2020)
• Bauxite export ban: June 2023
• Copper concentrate export ban: May 2024, with phased implementation
• Tin export restrictions: planned
• Objective: capture more value through domestic processing
• Result: rapid growth in exports of stainless steel, nickel matte and MHP
• Impact: an investment surge in smelters (Morowali, Weda Bay)

B. Electric vehicle (EV) ecosystem development

• Nickel-based battery manufacturing: partnerships with LG, CATL and Foxconn
• EV manufacturing incentives: tax holidays and import duty exemptions
• Domestic market development: EV subsidies (IDR 7 million per unit)
• Target: EV production of 600,000 units by 2030
• Export potential: EV batteries, EV components and eventually complete EVs

C. Agricultural transformation

• Food Estate programme: large-scale food production in Central Kalimantan and Sumatra
• Fertiliser subsidy programme: 9.5 million tonnes allocated for 2025, with a budget of IDR 46.8 trillion
• Distribution: a three-tier system integrated with the i-Pubers app
• Subsidy coverage expansion: organic fertilisers, urea, NPK, SP-36 and ZA under Presidential Regulation No. 6/2025
• Fertiliser imports: authorised to cover domestic shortfalls

D. Digital agriculture (e-agriculture)

• Agricultural War Room (AWR): established in 2021; integrates real-time data from the Digital Collection Platform (DCP)
• National E-Agriculture Strategy Roadmap: an integrated farmland and farmer database by 2027
• Early warning systems: for agricultural threats
• AgTech start-ups: Aruna, FishLog, Sayurbox, Super, Semaai, iGrow, Eden Farm, Jala, PasarMIKRO and Chilibeli

E. Electrifying Agriculture (EA) programme

• Launched: 2021, by PT PLN
• Scope: electric-powered technologies in farming, fisheries, plantations and livestock
• Reach: 300,000+ customers served by the end of 2024 (up from 241,700 in 2023)
• Transition: from fossil fuels to electricity for irrigation pumps and rice milling machines

F. Digital economy growth

• E-commerce: 25% annual growth (Shopee, Tokopedia, Lazada, Bukalapak)
• Fintech: digital payments, lending and insurtech (GoPay, OVO, Dana, LinkAja)
• Cross-border e-commerce: growing SME exports through platforms
• Digital infrastructure: the Palapa Ring fibre-optic network

G. New capital city (IKN) development

• Nusantara: in East Kalimantan
• Construction-phase imports: heavy machinery, construction materials and building equipment
• Operational-phase opportunities: ICT, smart city solutions and infrastructure
• Long-term effect: an economic shift towards Kalimantan

H. Green economy initiatives

• Carbon trading: first carbon trading launched in 2023
• Renewable energy targets (as set in the 2024–2026 roadmap): 23% by 2025 and 31% by 2050
• Biofuel programme: B35 (35% biodiesel blend)
• Sustainability certification: ISPO (Indonesian Sustainable Palm Oil) is mandatory

I. Import regime modernisation

• MOT Reg. 16/2025 and 37/2025: streamlined licensing and greater transparency
• Electronic integration: OSS, INATRADE and INSW fully integrated
• Verification shift: from the country of origin to in-country inspection points
• Surveyor reports: valid for a single shipment
• Enhanced data requirements: HS code, port of loading, TPB and KITE details

J. RCEP and CPTPP considerations

• RCEP implementation: expanding trade with Asia-Pacific
• CPTPP accession: under consideration; potential new market access

K. Geopolitical factors

• US–China trade tensions: Indonesia as an alternative manufacturing base
• BRICS membership (described as potential at the time of writing): trade policy implications
• Trade defence measures: safeguards on textiles, ceramics and footwear

Key contacts and resources

A. Government agencies

1. Directorate General of Customs and Excise (DGCE): beacukai.go.id · phone +62 21 489 5308 · humas@customs.go.id · Jl. Jenderal Ahmad Yani, Jakarta 13230
2. Ministry of Trade (Kemendag): kemendag.go.id · phone +62 21 385 8171 · info@kemendag.go.id · Jl. M.I. Ridwan Rais No. 5, Jakarta 10110
3. Indonesia National Single Window (INSW): insw.go.id
4. Investment Coordinating Board (BKPM): bkpm.go.id
5. National Agency of Drug and Food Control (BPOM): pom.go.id
6. Indonesian Quarantine Agency (IQA): karantina.pertanian.go.id
7. Statistics Indonesia (BPS): bps.go.id
8. Bank Indonesia: bi.go.id
9. Ministry of Industry: kemenperin.go.id
10. Ministry of Energy and Mineral Resources: esdm.go.id

B. Business organisations

1. Indonesian Chamber of Commerce and Industry (KADIN): kadin.id
2. Indonesian Employers Association (APINDO): apindo.or.id
3. Indonesian Food and Beverage Association (GAPMMI): gapmmi.id
4. Indonesian Palm Oil Association (GAPKI): gapki.id
5. Indonesian Textile Association (API): api.or.id
6. Indonesian Footwear Association (APRISINDO)
7. Indonesian Cosmetics Association (PERKOSMI)

C. Digital portals

1. Indonesia National Single Window (INSW): insw.go.id
2. INATRADE: inatrade.kemendag.go.id
3. Online Single Submission (OSS): oss.go.id
4. CEISA (Customs Electronic System): ceisa.beacukai.go.id
5. BPOM online notification: notifkasi.pom.go.id

D. Practical guidance for traders

For exporters to Indonesia

1. Work with experienced customs brokers: essential for navigating complex regulations
2. Obtain the necessary permits before shipping: BPOM, quarantine, SNI and so on; processing takes weeks
3. Use licensed Indonesian importers: they must hold a valid API (API-U or API-P)
4. Verify the API type: an API-P cannot import finished goods for resale
5. Prepare complete documentation: minor errors cause major delays
6. Indonesian-language labels: mandatory for all food products
7. Halal certification: increasingly mandatory for food, beverages and cosmetics
8. Electronic submission: through INSW before the cargo arrives
9. Check regulatory updates: changes are frequent (MOT Reg. 16/2025 and 37/2025)

For importers from Indonesia

1. Verify export licences: for restricted products (timber, minerals and so on)
2. Certificate of origin: claim FTA preferences (Form D, E, AK and so on)
3. Quality certification: make sure products meet the destination country’s standards
4. Sustainability certification: required for palm oil, timber and fisheries (ISPO, SVLK, MSC)
5. Logistics planning: allow for port congestion at Tanjung Priok
6. Payment terms: letters of credit are common for new relationships

Economic impact and strategic position

A. Trade balance dynamics

• Surplus record: five consecutive years of surplus since 2020
• 2024 surplus: US$31.1 billion, ↓ 15.78% from 2023
• Non-oil and gas surplus: US$51.44 billion
• Oil and gas deficit: US$20.4 billion
• Trend: the surplus continues despite the normalisation of commodity prices

B. Global strategic position

1. Nickel superpower: the world’s largest nickel producer (50% of global supply)
2. Palm oil dominance: the world’s largest producer and exporter (60% of global supply)
3. Thermal coal leader: the world’s largest thermal coal exporter
4. Tin power: the world’s 2nd largest tin producer
5. Copper producer: home to the world’s 2nd largest copper mine (Grasberg)
6. LNG exporter: the world’s 9th largest LNG exporter
7. ASEAN hub: the largest economy in Southeast Asia
8. Demographic dividend: a population of 280 million, the 4th largest globally

C. Competitiveness indicators

Source: OEC

D. Challenges

1. Export concentration: heavy dependence on commodities (coal, palm oil)
2. Downstreaming implementation: phasing out raw material exports while building processing capacity
3. Infrastructure gaps: port congestion and logistics costs (the highest in ASEAN)
4. Regulatory complexity: frequent policy changes and overlapping authorities
5. Import licensing hurdles: a complex system that causes delays
6. Rupiah volatility: currency fluctuations affect trade competitiveness
7. Trade defence actions: safeguard measures affect imports
8. Climate vulnerability: the palm oil and agriculture sectors face sustainability pressure

E. Opportunities

1. EV battery supply chain: nickel processing, battery manufacturing and EV assembly
2. Downstreaming: processing minerals (bauxite, copper, tin) domestically
3. Digital economy: growing e-commerce, fintech and a tech start-up ecosystem
4. Renewable energy: geothermal, solar and biofuel development
5. Infrastructure investment: the new capital city (IKN), ports and toll roads
6. Food security: agricultural modernisation and better fertiliser distribution
7. RCEP integration: expanded market access in Asia-Pacific
8. Supply chain diversification: companies relocating from China
9. Blue economy: fisheries, marine resources and maritime logistics
10. Healthcare manufacturing: pharmaceutical and medical device production

Summary of Indonesia’s trade characteristics

1. Commodity powerhouse: a world leader in nickel, palm oil and thermal coal; a major producer of tin, copper and LNG
2. Downstreaming focus (hilirisasi): moving from raw material exports to processed products (nickel to stainless steel and batteries)
3. ASEAN’s largest economy: the gateway to Southeast Asia’s 680 million consumers
4. Demographic giant: a population of 280 million and a growing middle class
5. Trade surplus champion: five consecutive years of surplus since 2020
6. FTA network: extensive regional and bilateral agreements, including RCEP
7. Complex regulatory environment: frequent changes and multiple permits required
8. API system: strict separation between general importers (API-U) and producer importers (API-P)
9. In-country verification shift: the 2025 reforms move inspection from the country of origin to domestic bonded zones
10. Food import dependence: the world’s largest rice and raw sugar importer; 80% of dairy is imported

Indonesia is Southeast Asia’s largest economy, combining world-leading commodity production (nickel, palm oil, coal) with a massive domestic market and growing manufacturing capabilities. The country’s strategic “downstreaming” (hilirisasi) policy aims to capture more value from natural resources through domestic processing, with nickel leading the way into EV battery production. Indonesia’s extensive FTA network (including RCEP), demographic dividend and infrastructure investments position it for continued growth.

Traders must, however, navigate a complex regulatory environment, frequent policy changes and significant import licensing requirements. The 2025 reforms (MOT Reg. 16 and 37) aim to streamline procedures and improve transparency, but working with experienced local partners remains essential for success. Indonesia’s trade future depends on successful downstreaming, infrastructure development, regulatory simplification and turning its natural resource wealth into higher-value manufacturing.

Sources: ICE · US Commercial Service, agriculture guide · US Commercial Service, import requirements · SSEK · vLex

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