Bilateral Trade Relations between India and Indonesia 2016

27 September 2017

India Indonesia bilateral trade has increased from USD 4.3 billion in 2005 to USD 15.9 billion in 2015. It is declined due to normal global economic situation, fall in commodity prices and less overall imports by Indonesia. Indian companies have increased investment in Indonesia, primarily in power, textile, infrastructure, steel and consumer goods. The sectors like IT, Pharmaceuticals, infrastructure in railways are economic drivers of India but missing in Indonesia while Indonesia is strong in plantations, low cost housing and retail which India needs to progress besides imports of coal and palm oil. Here, we are discussing briefly bilateral trade between India and Indonesia.

India Indonesia Bilateral Trade

India and Indonesia agreed to organise a trade and investment forum. The forum arrived at constructive suggestions to enhance bilateral trade and investment cooperation. Both countries are looking to develop their exchanges, investment opportunities, tax benefits and cooperation further and bring their relations to a new height. Trade, commerce and business are at the foundation of the relationship between these two countries as they are interested in extending their economic ties.

Both countries have agreed to establish a strategic partnership and have a significant bilateral trade. India and Indonesia have been generally close due to their geographic nearness. The maritime links from India to South-east Asia are all passing through Indonesia. Let’s, take a look at the highlights of India Indonesia bilateral trade.

              ·         Indonesia is India’s second largest trading partner in ASEAN countries.

              ·         India is the largest buyer of crude palm oil from Indonesia.

              ·         The bilateral trade between India and Indonesia stood at USD 15.31 billion in 2016.

              ·         India exports to Indonesia totalled USD 3.13 billion & imports totalled USD 12.18 billion.

              ·         India Indonesia trade deficit stood at USD 9.05 billion in 2016.

India Indonesia Trade: India Exports to Indonesia

India exports to Indonesia is very low as compared to its imports from Indonesia. Organic chemicals, ships & boats, machinery, vehicles and oil seeds are the top commodities of India which are exported to Indonesia. Indian exports to Indonesia have been decreased by 18% between 2012 and 2016. According to India Indonesia trade statistics, India exports of organic chemicals and boats have been declined by 20% and 45% respectively during the same period. The export value of these two products recorded USD 318 million and USD 315 million during the year 2016.

However, the ITC trade map shows that India export of meat to Indonesia is raised by 427% in 2016. It is recorded USD 203 million during 2016 earlier, in 2015 it was USD 2.46 million. Refer the below table to check the main exports of India to Indonesia.

*Above stats are based on 2016 report

India Indonesia Trade: India Imports from Indonesia

As per the India Indonesia bilateral trade statistics, India imports worth four times its exports. India imports from Indonesia worth USD 12189 million during the year 2016. The import is declined by 4% between 2012 and 2016. India majorly imports mineral fuels and animal or vegetable fats & oils from Indonesia and recorded value of USD 4730 million and USD 3696 million during 2016. White it is noted a decline of 5% and 10% in import of these two products. Go through the following table to know the top 5 India imports from Indonesia.

*Above stats are based on 2016 report

Sample of India Indonesia Trade

Indonesia has emerged as one of the largest trading partners of India. Indian importers are majorly importing from Indonesian suppliers. Want to import palm oil, furniture or any other commodity from Indonesia? Well, you must know about the active Indonesian exporters. Here, we are providing a sample of India imports of furniture from Indonesian supplier.

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