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Trade Profile

In this page: Foreign Trade in Figures | Trade Compliance | Standards

 

Foreign Trade in Figures

Indonesia is very open to foreign trade, which represents 37% of its GDP (WTO, 2016).

Indonesia’s trade balance was in deficit from 2012 through 2014. However, in 2015, Indonesia recorded a trade surplus, due to a decreasing oil and gas deficit and a positive balance of trade in the non-oil and gas sector. This trend continued in 2016 with a surplus of USD 10.2 billion.

The three main export partners of Indonesia are Japan, China and Singapore, followed by the U.S. and India. The commodities that are mainly exported are coal, palm oil, petroleum gas and oils and natural rubber. Its main import partners are China, Singapore and Japan. Indonesia mostly imports mineral oils, gas and electric & electronic equipment.

 
Foreign Trade Indicators 20122013201420152016
Imports of Goods (million USD) 191,691186,629178,179142,695135,653
Exports of Goods (million USD) 190,032182,552176,293150,282144,490
Imports of Services (million USD) 33,63934,42533,07630,22230,637
Exports of Services (million USD) 23,07022,33422,92021,25924,151
Imports of Goods and Services (Annual % Change) 8.01.92.1-6.4-2.3
Exports of Goods and Services (Annual % Change) 1.64.21.1-2.1-1.7
Imports of Goods and Services (in % of GDP) 25.024.724.420.718.3
Exports of Goods and Services (in % of GDP) 24.623.923.721.219.1
Trade Balance (million USD) 8,6805,8336,98314,04915,390
Foreign Trade (in % of GDP) 49.648.648.141.937.4

Source: World Trade Organisation (WTO) - 2017; World Bank - 2017

 

Main Partner Countries

Main Customers
(% of Exports)
2016
China 11.6%
United States 11.2%
Japan 11.1%
Singapore 7.8%
India 7.0%
Malaysia 4.9%
South Korea 4.8%
Thailand 3.7%
Philippines (the) 3.6%
Netherlands 2.3%
Main Suppliers
(% of Imports)
2016
China 22.7%
Singapore 10.7%
Japan 9.6%
Thailand 6.4%
United States 5.4%
Malaysia 5.3%
South Korea 4.9%
Australia 3.9%
Vietnam 2.4%
Germany 2.3%

Source: Comtrade, 2017

 

Main Products

144.5 bn USD of products exported in 2016
Palm oil and its fractions, whether or not refined (excl. chemically modified) 9.9%
Coal; briquettes, ovoids and similar solid fuels manufactured from coal 8.9%
Petroleum gas and other gaseous hydrocarbons 4.9%
Petroleum oils and oils obtained from bituminous minerals, crude 3.6%
Articles of jewellery and parts thereof, of precious metal or of metal clad with precious metal (excl. articles > 100 years old) 2.8%
Copper ores and concentrates 2.4%
Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip 2.3%
Coconut copra, palm kernel or babassu oil and fractions thereof, whether or not refined, but not chemically modified 1.9%
Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 1.8%
Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols 1.6%
135.7 bn USD of products imported in 2016
Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 7.3%
Petroleum oils and oils obtained from bituminous minerals, crude 5.0%
Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.6%
Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 1.9%
Wheat and meslin 1.8%
Cane or beet sugar and chemically pure sucrose, in solid form 1.5%
Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 1.5%
Petroleum gas and other gaseous hydrocarbons 1.2%
Oil-cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya-bean oil 1.2%
Electronic integrated circuits and microassemblies 1.2%

Source: Comtrade, 2017

 
 
 

Main Services

20.4 bn USD of services exported in 2015
Travel
52.64%
Other business services
24.45%
Transportation
17.02%
Government services
3.09%
Construction services
1.85%
Cultural and recreational services
0.56%
Royalties and license fees
0.26%
Insurance services
0.13%
27.6 bn USD of services imported in 2015
Transportation
34.75%
Other business services
27.00%
Travel
26.39%
Royalties and license fees
5.98%
Insurance services
3.41%
Construction services
1.64%
Government services
0.59%
Cultural and recreational services
0.24%

Source: United Nations Statistics Division, Latest Available Data

 

Exchange Rate System

Local Currency
Indonesian Rupiah (IDR)
Exchange Rate Regime
There is no currency exchange control. The Indonesian rupee is freely convertible.
Level of Currency Instability
There are no particular regulations concerning currency exchange.
 
 
Monetary Indicators 20122013201420152016
Indonesian Rupiah (IDR) - Average Annual Exchange Rate For 1 USD 9,386.6310,461.2411,865.2113,389.4113,308.33

Source: World Bank - Latest available data.

 
 

Trade Compliance

International Conventions
Member of World Trade Organisation
Party to the Kyoto Protocol
Party to the Washington Convention on International Trade in Endangered Species of Wild Fauna and Flora
Party to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Party to the Montreal Protocol on Substances That Deplete the Ozone Layer
Party of the International Coffee Agreement 2007
Main International Economic Cooperation
The country is a member of the APEC, ASEAN, AFTA and the ASEAN - China Free Trade Area.
The country have signed a trade agreement with 21 other countries in the São Paulo Round of the Global System of Trade Preferences among Developing Countries (GSTP).
Party of the ATA Convention on Temporary Admissions and Use of the Carnets
No

As a Reminder, the ATA is a System Allowing the Free Movement of Goods Across Frontiers and Their Temporary Admission Into a Customs Territory With Relief From Duties and Taxes. The Goods Are Covered By a Single Document Known as the ATA Carnet That is Secured By an International Guarantee System.
Look Up the Other Member Countries And Read the Web Pages of the World Customs Organization Devoted to the ATA Carnet.
Party of the TIR Convention
Yes

As a Reminder, the TIR Convention and its Transit Regime Contribute to the Facilitation of International Transport, Especially International Road Transport, Not Only in Europe and the Middle East, But Also in Other Parts of the World, Such as Africa and Latin America.
The UNCTAD Website Allows You to Read the TIR Convention, See the List of Member Countries And to Find Further Information.
Accompanying Documents For Imports
Goods dispatched to Indonesia must be accompanied by the following documents:

> the single administrative document (SAD)

> the commercial invoice
It must be drawn up in triplicate, in English
- the FOB price

> a phytosanitary certificate
it is necessary for fruit, vegetables, seeds and other plants and is issued by the regional department for the protection of plants.

> a health certificate and a certificate of non radioactive contamination
They are necessary for meats and are issued by the departmental direction of veterinary services

> an attestation of non-contamination by dioxine
Required for ovine meat

> form EUR 1
To benefit from the preferential tariff applicable to imports from the European Union

> slaughtering certificate
According to the Islamic rite for meat, it is issued by the Paris Mosque.

> certificate of free sale for cosmetics
Drawn up by the Federation of Perfume Industries

> transport documents and packing list

Free Zones
In 2006 the government launched a plan to develop seven special economic areas, or "islands of excellence", situated in strategic areas where infrastructures, industries and inputs (especially a qualified workforce) are available. The first three special economic areas are located in the islands of Batam (south of Singapore), Bintan and Karimun.

Several bonded zones are located around Jakarta (For example Marunda or Tanjung Priok), close to the international airport and the harbour. International importation and exportation from the bonded zones are free of custom fees. Products from bonded zones exported to the Indonesian domestic market pay a tariff of 25%.

For Further Information
General Customs Office
Ministry of Commerce
Indonesian Chamber of Commerce and Industry
Non Tariff Barriers
It is strictly prohibited to import certain products: books, magazines, brochures and newspapers written in Chinese, in Indonesian or in a local language (except for scientific reasons) as well as cassettes, video cassettes and films for personal use.
Import licenses are required for medicines, psychotropic substances, explosives, arms, fireworks, films and videos, telecommunications equipment, color photocopiers, unregistered foods and drinks, some pesticides (DDT, EDB, Pentachlorophenols). These licenses are issued after consultation with the competent Ministry (Agriculture, Health, Commerce and Industry).

Permits are required for animals and animal products. These documents are issued by the Directorate General of Livestock and Animal Health Services. At present, the importation of all chicken products is banned. There is a specific quota system for spirits and wines.

Foreign companies are allowed to import or to manufacture products but not both.

Sectors or Products For Which Commercial Disagreements Have Been Registered With the WTO
In the affair in which it was opposed to Korea, Indonesia requested the setting up of a special group to examine Korea's imposing definitive antidumping duties on imports of photocopying paper ("business information paper") and woodless non-art printing paper, coming from Indonesia.

Indonesia was one of a number of plaintiffs in the dispute against the United States concerning the Law of 2000 on compensation for the continuation of dumping and the maintaining of the subsidy (CDSOA, more well known as the Byrd Amendment). In addition, in 2004, the United States applied antidumping measures against Indonesian
polyethylene terephthalate resin (PET) for manufacturing bottles, and certain canned mushrooms.

Indonesia and Japan reached a mutually satisfying solution in the dispute concerning the Customs classification of Indonesian tariff lines for "other digital cameras", Indonesia having accepted to eliminate progressively Customs duties on the products in question between January 2007 and January 2009.

Assessment of Commercial Policy
Trade policy of Indonesia, as seen by WTO.
Barriers to exchanges, inventoried by the United States
Barriers to exchanges, inventoried by the EU
Sanitary and phytosanitary barriers, inventoried by the EU

Learn more about How to Export to Indonesia on Globaltrade.net, the Directory for International Trade Service Providers.

 

Standards

National Standards Organisations
National Standardisation Agency (BSN)
National Accreditation Committee (KAN)
Integration in the International Standards Network
At the international level:

- International Electrotechnical Commission (IEC)
- International Organisation for Standardisation (ISO)
- Codex Alimentarius Commission (CAC)
- International Laboratory Accreditation Cooperation (ILAC).

At the regional level:

- ASEAN Consultative Committee for Standards and Quality (ACCSQ),
- APEC Standards and Conformance Sub Committee,
- Pacific Area Standard Congress (PASC)
- Asia Pacific Metrology Program (APMP)
- Asia Pacific Laboratory Accreditation Cooperation (APLAC)
- Pacific Accreditation Cooperation (PAC)
Obligation to Use Standards
The application of SNI standards is voluntary, so the activities and products which do not observe them are not prohibited. For the protection of common interest, the security of the country, national economic development and the preservation of the environment, some standards may be made compulsory (SNI wajib).
Classification of Standards
"SNI" is the national certification mark.
Assessment of the System of Standardization
The rapid growth of international trade has led to the development of standards, observed in order to remain competitive and used as non-tariff barriers against competition. Standardisation activities only began in 1991, following the Government's adoption of regulations concerning the wording, the setting up and the control of the Indonesian National Standard (SNI). The use of standards is very widespread today.
Online Consultation of Standards
The list of Indonesian standards is available on the BSN website.

 

Certification Organisations
National Standardisation Body (BSN)

 

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Last Updates: October 2017