Indonesia, as one of the largest economies in Southeast Asia, represents an attractive market for international trade. Located at the crossroads of maritime and air routes, the country holds a strategic geographical position, making it a vital trading partner. In this article, we will explore import statistics and highlight the goods and services in demand in the Indonesian market, things that are not produced locally, and what opportunities are available for foreign entrepreneurs looking to engage in trade business in Indonesia.
According to the latest available data from the UN COMTRADE, the primary goods that Indonesia purchases from global markets include:
1. Mineral fuels, distillation products — This category holds the top position among all imported goods. Despite being an exporter of oil and gas, Indonesia imports significant volumes to meet domestic needs.
2. Machinery and electronic equipment — These two categories are the second-largest. This includes computer equipment, industrial machinery, and electronics.
3. Iron, plastics — This category also includes various types of steel. In addition to finished plastic products, Indonesia imports raw materials for processing.
4. Chemical products — Various chemicals for industrial use and pharmaceutical products make up a significant portion of imports.
5. Vehicles — The Indonesian automotive industry requires a large number of components and ready-made vehicles from other countries.
About 75% of all goods imported into Indonesia come from Asian countries, due to their geographical proximity. Some of the largest trading partners include:
It’s no surprise that China is Indonesia’s largest exporter due to its close location and China’s developed manufacturing base. The main product groups are electronics, machinery, and equipment.
Japan holds a significant share in Indonesia’s import market, particularly due to the high quality of its automotive and technical products. Like China, Japan supplies electronics and various types of machinery.
Singapore acts not only as an individual exporter to Indonesia but also as a transshipment point for goods from other countries, thanks to its unique geographical position and advanced logistics networks.
The United States exports a wide range of products to Indonesia, from agricultural goods to high-tech equipment. The cultural influence of the U.S. also boosts the popularity of American brands in the Indonesian market.
Malaysia provides Indonesia with essential natural resources and semi-finished products for manufacturing.
Australia is a key supplier of agricultural products such as meat and grain, as well as mineral resources for Indonesia’s industrial sector.
These are just a few of Indonesia's top exporting countries. The list includes about 200 countries, with Russia ranking 19th. This shows that Indonesia relies heavily on imports for many products that are not produced domestically. For foreign entrepreneurs and investors, this is an opportunity to become trading partners and start a business in Indonesia related to importing goods. Below, we’ll discuss the key product categories worth considering.
Indonesia has a diverse industrial base, but there are sectors where the country experiences shortages. Local production capabilities sometimes lag behind the rapidly growing consumer demand.
Although the agricultural sector plays a significant role in Indonesia’s economy, farmers often lack the latest technology to meet their needs for agricultural machinery.
High-quality medicines and pharmaceutical equipment are in high demand due to limited local production.
There is a growing demand for international education programs as Indonesia seeks to raise the level of education among its population.
This includes both large industrial machinery for the mining sector and more specialized electronic devices.
With the development of the digital economy in Indonesia, there is increasing demand for software and IT services.
Eco-friendly technologies are developing rapidly, which creates a need for importing the relevant equipment and technical expertise.
Certain types of food are not produced in sufficient quantities domestically. The demand for foreign products is growing each year.
Spare parts for European and American-made cars represent a niche segment for export.
To sum up, there are significant opportunities for foreign companies interested in importing to Indonesia, ranging from high-tech equipment to expanding service sectors. The key is to thoroughly research the market’s specific needs and consumer demands to ensure commercial success.
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