Economic Relations Overview
Bilateral Relations Dynamics
Indonesia – China
Trade relations between Indonesia and China continue to show significant dynamics. China is Indonesia's largest trading partner, dominating the absorption of energy commodities and downstream mineral products, while also being the main supplier of technology products and industrial machinery.
As strategic partners, both countries complement each other in the global supply chain. Indonesia's exports to China are dominated by energy commodities such as coal and palm oil, but are now increasingly enriched by high value-added downstream products such as iron and steel, and processed nickel, which are vital for the global electric vehicle battery industry.
On the other hand, China is the main source of Indonesia's imports for telecommunications equipment, data processing machines, and integrated electronic components, which support the growth of the domestic digital and manufacturing sectors. These dynamics reflect deep interdependence, where Indonesia seeks to increase downstream industrial capacity and China continues to secure a stable supply to support its economic expansion.
"This partnership transcends mere exchange of goods; it has become a strategic foundation that complements the global supply chain, particularly in the context of energy transition and high-tech industries."
Indonesia Exports → China
Top Export Commodities
Six major commodities dominating Indonesia's export flow to the Chinese market, covering the energy, downstream mineral, and agricultural sectors.
Coal
Dominant with an export value reaching US$ 24.48 Billion. A vital energy source for China's industrial growth.
Iron and Steel
Reaching US$ 26.54 Billion. Indonesia's flagship downstream ferronickel and stainless steel products.
Palm Oil (CPO)
An essential raw material to meet the high demand of the food and manufacturing industries in China.
Nickel Products
Valued at US$ 6.80 Billion. A vital component for China's global EV battery industry supply chain.
Lignite
Exports amounting to US$ 5.95 Billion. Complementing the solid fuel needs of Chinese industries.
Natural Gas
Contributing US$ 2.45 Billion. Diversifying Indonesia's energy exports to the East Asian region.
Export Data Summary — HS Code & Value
| Commodity | HS Code | Significance / Value | Ref. |
|---|---|---|---|
| Iron and Steel | 72 | US$ 26.54 Billion | [9] |
| Coal | 2701 | US$ 24.48 Billion | [9] |
| Nickel Products | 75 | US$ 6.80 Billion | [9] |
| Lignite | 2702 | US$ 5.95 Billion | [9] |
| Natural Gas | 2711 | US$ 2.45 Billion | [9] |
China Imports → Indonesia
Top Imported Commodities from China
China is the main source of technology products, communication devices, and electronic components for Indonesia's industrial and digital markets.
Telephones
Telecommunication devices crucial for digital infrastructure.
Computers
Data processing machines supporting Indonesia's IT growth.
Electronic Components
Integrated circuits (IC) for local electronics assembly plants.
Plastic Products
Plastics and articles thereof to sustain local manufacturing.
Import Data Summary
| Commodity | HS Code | Significance |
|---|---|---|
| Telecommunications Equipment | 8517 | Supports the digital sector |
| Computer / Data Processing Machines | 8471 | IT Infrastructure backbone |
| Integrated Electronic Components | 8542 | Assembly raw materials |
Strategic Highlight
Iron & Steel: Concrete Proof of
Downstreaming Success to China
Iron and Steel (HS 72) commodities reached a record export value of up to US$ 26.54 Billion. This shifts the raw material export paradigm, proving that Indonesia's nickel downstreaming program has successfully penetrated the heart of China's manufacturing industry supply chain.
Export value of Iron and Steel to China
Export value of Nickel derivatives (HS 75)
Continued growth for global EV batteries
Moving Forward
Prospects & Strategy for
Bilateral Partnership
With China's massive economic scale and its position as the largest consumer in Asia, opportunities for Indonesian products to penetrate the Chinese market remain wide open. Future focus will not only be on fulfilling conventional energy needs but also on providing critical materials for future technologies.
Therefore, strategies to improve competitiveness and quality assurance, alongside utilizing existing economic cooperation schemes, are key for Indonesia to maximize export potential and maintain the trade balance with China.
Advanced Mineral Downstreaming
Maximizing exports of value-added products like EV batteries and green technology components.
Energy Security
Maintaining a stable supply of high-quality coal while supporting China's energy transition vision.
Infrastructure Investment
Encouraging Chinese FDI in the infrastructure sector and the development of integrated industrial estates.
Trade Facilitation
Optimizing RCEP and ACFTA frameworks for tariff efficiency and smooth maritime logistics.
Explore Further
Strategic Partners in East Asia
References & Data Sources
15 verified sources — click to expand
References & Data Sources
15 verified sources — click to expand
Bibliography & Sources (APA Format)
- [1]World's Top Exports. (n.d.). Indonesia's Top Trading Partners 2025. worldstopexports.com
- [2]BPS-Statistics Indonesia. (2024). Nilai Ekspor Menurut Negara/Wilayah/Entitas tertentu Tujuan Utama (Nilai FOB: juta US$), 2000–2024. bps.go.id
- [3]BPS-Statistics Indonesia. (2024). Balance of Trade of Selected Country/Region/Certain Entity (Million US$), 2024. bps.go.id
- [9]tradeint.com. (2025). Indonesia Export Data 2025: Top Partners, Products Analysis. tradeint.com
- [11]Coordinating Ministry for Economic Affairs RI. (2025). Ekonomi Indonesia Terkini — RED Desember 2025. ekon.go.id
- [12]BPS-Statistics Indonesia. (2025). Foreign Trade Statistics Monthly Export, January 2025. bps.go.id
- [13]BPS-Statistics Indonesia. (2025). Exports and Imports of Indonesia, January 2025. web-api.bps.go.id (PDF)