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Market characteristics and market development trend of Indonesia

29/04/2022

Indonesia's GDP in 2021 reached 1,186 billion USD, with growth rate of 3.5%. Indonesia's GDP growth in 2022 is expected to reach 5.4%. Indonesia is a country with abundant national resources, including: oil, natural gas, tin, nickel and bauxite, but is still a poor country, because of its large population. Nearly 40% of the workforce work in agriculture sector. The main agricultural commodities of Indonesia are rubber and rubber products, palm oil, poultry, beef, forest products, shrimp, coca, coffee, herbal products, cooking oil, fish, spices. Rice is the main food crop, however, the amount of rice production is not enough to meet the domestic consumption demand. Indonesia also exports a significant amount of rubber, tea, coffee and spices. Indonesia's main industrial commodities are petrol, gas, textiles, machinery, automobiles, electronic components, ore mining, cement, chemicals, fertilizers, industrial wood, rubber, and food processing. Industrial activities are majorly involved in oil and gas extraction, mineral processing, and agricultural product processing.

Indonesia's GDP in 2021 reached 1,186 billion USD, with growth rate of 3.5%. Indonesia's GDP growth in 2022 is expected to reach 5.4%. Indonesia is a country with abundant national resources, including: oil, natural gas, tin, nickel and bauxite, but is still a poor country, because of its large population. Nearly 40% of the workforce work in agriculture sector. The main agricultural commodities of Indonesia are rubber and rubber products, palm oil, poultry, beef, forest products, shrimp, coca, coffee, herbal products, cooking oil, fish, spices. Rice is the main food crop, however, the amount of rice production is not enough to meet the domestic consumption demand. Indonesia also exports a significant amount of rubber, tea, coffee and spices. Indonesia's main industrial commodities are petrol, gas, textiles, machinery, automobiles, electronic components, ore mining, cement, chemicals, fertilizers, industrial wood, rubber, and food processing. Industrial activities are majorly involved in oil and gas extraction, mineral processing, and agricultural product processing.

Indonesia's GDP in 2021 reached 1,186 billion USD, with growth rate of 3.5%. Indonesia's GDP growth in 2022 is expected to reach 5.4%. Indonesia is a country with abundant national resources, including: oil, natural gas, tin, nickel and bauxite, but is still a poor country, because of its large population. Nearly 40% of the workforce work in agriculture sector. The main agricultural commodities of Indonesia are rubber and rubber products, palm oil, poultry, beef, forest products, shrimp, coca, coffee, herbal products, cooking oil, fish, spices. Rice is the main food crop, however, the amount of rice production is not enough to meet the domestic consumption demand. Indonesia also exports a significant amount of rubber, tea, coffee and spices. Indonesia's main industrial commodities are petrol, gas, textiles, machinery, automobiles, electronic components, ore mining, cement, chemicals, fertilizers, industrial wood, rubber, and food processing. Industrial activities are majorly involved in oil and gas extraction, mineral processing, and agricultural product processing.

Indonesia is a potential marker for Vietnamese goods. Indonesia has import demand for many products of Vietnam, especially rice and some agricultural products such as tea and coffee. In terms of industrial products, Indonesia needs to import food products, beverages, textiles, footwear, plastics, textile fibers, chemical products such as fertilizers, aromatics, detergents, and pharmaceuticals. However, this is a market with many barriers and restrictions on trade for goods exported from other countries.

In 2021, the total bilateral trade turnover reached US$11.5 billion (up 40.1%), of which exports to Indonesia reached US$3.9 billion (up 38.5%) and imports from Indonesia reached 7.5 billion (up 41%), trade deficit from Indonesia for the whole year 2021 reached $3.6 billion.

In the first 10 months of 2022, Vietnam's import and export turnover to Indonesia reached 11.6 billion USD, up 26%, of which exports to Indonesia reached 3.7 billion USD, up 22%, imports from Indonesia reached 7.8 billion USD, up 28%, trade deficit from Indonesia reached 4 billion USD.

Some main export items to Indonesia in the first 10 months of 2022: computers and electronic products (US$393.8 million, up 2.3%); plastic materials (US$343.4 million, up 36%); textiles and garments (US$335.6 million, up 16%); raw materials for textiles, leather and footwear ($301.9 million, up 35%); machinery, equipment and tools of all kinds (US$279 million, up 42%).

Some key imports from Indonesia in the first 10 months of 2022: coal ($1.34 billion, a sharp increase of 19%); iron and steel of all kinds (US$938.6 million, up 121%); CBU cars of all kinds ($792.6 million, up 65%), animal and vegetable fats and oils ($749 million, up 36%), other common metals ($409.9 million, up 40%), computers and electronic products ($258 million, up 39%).