As a leading country in economic growth among Southeast Asian nations, Indonesia plays a significant role in the global export market. Its tropical climate, rich natural resources, and developed industries allow Indonesia to offer unique products for international trade. In this article, we will explore export statistics and highlight which products are exclusively produced in Indonesia or particularly profitable for export. If you are planning to start a business in Indonesia related to export-import activities, the information below will be useful for you.
Which categories of goods are most frequently exported from Indonesia? To analyze this, we refer to the latest available data from the UN COMTRADE on international trade:
1. Mineral fuels, oils, distillation products (24%)
Indonesia is rich in natural resources, and a significant part of its export comprises hydrocarbons (oil, gas, coal), making this category the largest among exported goods, accounting for nearly a quarter of the total.
2. Animal, vegetable fats and oils, cleavage products (12%)
Indonesia is the world's largest producer and exporter of palm oil, supplying about half of the world's supply. Palm oil is used in both the food industry and for biofuel production.
3. Iron, steel (9.5%)
The export of these resources guarantees significant income from international trade. Iron and steel are used in construction, automotive manufacturing, shipbuilding, and the production of household appliances and electronics.
4. Electrical and electronic equipment (5%)
These components are processed for further use in various industries — from household appliances to advanced communication systems.
5. Vehicles (3.8%)
Thanks to its developed automotive industry, Indonesia exports cars, trucks, and various types of two-wheeled vehicles. The main brands include Toyota, Daihatsu, and Honda.
Natural resources, chemicals, and equipment are certainly in demand. However, foreign trade representatives often seek more unique or especially profitable goods for export. These include:
• Jewelry with pearls
Favorable conditions for pearl farming allow Indonesia to produce high-quality, unique jewelry.
• Coffee
Indonesia is famous for its coffee, such as Kopi Luwak and Sumatran coffee, which are among the rarest and most expensive types of coffee in the world. Many foreigners in Bali open coffee shops using local beans.
• Batik
Indonesia boasts a unique technique of hand-painted fabric known as batik, which has no analogs elsewhere in the world and is protected by UNESCO as intangible cultural heritage. Clothing, textile products, paintings, masks, and figurines made from batik are distinctive items not found anywhere else except Indonesia.
• Food products
Thanks to its climate, Indonesia offers a rich variety of exotic fruits and vegetables. Not to mention rare spices and nuts, such as local cloves, galangal, Kaempferia galanga, keluak, and candlenuts.
• Furniture
Indonesian furniture is in demand due to its high quality. It is made from durable and long-lasting types of wood such as teak, mahogany, tamarind, and rosewood.
Indonesia, with its rich resources and strategic location, attracts many foreign entrepreneurs for trade business. If you plan to start an import-export business in this country, there are several key aspects to consider.
First and foremost, it is essential to conduct thorough market analysis and identify potential goods for import or export. You need to study demand, competition, and tariff regulations on goods.
To open a business in Bali or elsewhere in Indonesia, you must first register a company or representative office in the country and obtain an NPWP (tax identification number). You don't have to handle this yourself; you can delegate the registration to a consulting agency. You can learn more about setting up your own company from this article or contact us for a consultation.
Additionally, to carry out business activities, you need to obtain an SIUP (trade license). Depending on the type of products, special licenses or permits from relevant ministries or government agencies may be required. For example, food products require certification from BPOM (Food and Drug Control Agency).
When importing goods, it is important to understand Indonesia’s customs clearance procedures. Importers will need to submit import declarations (PIB) and supporting documents such as a commercial invoice, packing list, and bill of lading/airway bill. Exporters will also need to prepare appropriate export declarations (PEB).
Understanding Indonesia’s taxation system is crucial for correctly calculating product prices, including all possible tax deductions. Another important factor is selecting a reliable banking system for international transactions. You can learn about Indonesia's tax system in this article.
Logistics plays a key role — choosing reliable carriers and determining optimal delivery routes for your goods to reach the end recipient is essential.
Thanks to the diversity of available goods and competitive advantages, there are broad opportunities for doing business in Indonesia. Keep in mind the steps mentioned above, and you’ll be able to avoid most obstacles on your path to successful international trade. If you need personal consultation, legal assistance, or support at the stages of company registration, our company, Good Luck Group, will provide all the necessary resources for you.
