December 23, 2024
India’s exports to Indonesia amounted to US$5.99 billion, led by mineral fuels and vehicles, showcasing significant trade synergies
Indonesia’s investments in India, valued at US$653.83 million, span sectors like automotive, pharmaceuticals, and banking
Economic momentum in Indonesia remains robust, with GDP growth projected at 5.1% in 2025 and inflation hitting a record low of 1.71% in October 2024
Indonesia is set to dominate the global nickel market, projected to supply 62% of global demand by 2028, aligning with its ambitions in EV and battery manufacturing
India and Indonesia have strengthened their economic partnership, with bilateral trade touching US$29.4 billion in FY2023-24. Indonesia is India’s eighth-largest trading partner, while India ranks as the second-largest buyer of Indonesian coal and crude palm oil. According to a Rubix Data Sciences report, this underscores the strategic importance of the relationship.
India exported goods worth US$5.99 billion to Indonesia in FY2024, dominated by mineral fuels and vehicles. On the investment front, Indonesia has cumulatively channelled US$653.83 million into India, targeting sectors like automotive, pharmaceuticals, and banking.
The report highlights Indonesia’s business landscape as one of immense opportunity, buoyed by the country’s economic resilience, evolving policies, and emerging sectors like electric vehicles (EVs). Businesses seeking a global footprint can leverage Indonesia’s strategic initiatives, propelling its rise as ASEAN’s largest economy.
With a projected GDP growth of 5.1% in 2025 and inflation contained at 1.71% in October 2024, Indonesia exhibits economic stability and growth. The nation is also cementing its role as a global nickel powerhouse, with 62% of global supply expected by 2028—a crucial element for its burgeoning EV and battery manufacturing industries.
Targeted policies, such as bans on raw nickel and bauxite exports, have attracted over US$30 billion in investments, largely from China, fostering value addition within Indonesia. The country’s trade management continues to shine, marked by its 53rd consecutive monthly trade surplus in September 2024.
Sustainability is a cornerstone of Indonesia’s economic strategy. The nation has reduced deforestation by 75% since 2019 and is pursuing ambitious green energy projects under its Vision 2045. By balancing industrialisation with environmental consciousness, Indonesia is positioning itself as a global leader in sustainable growth.
Source: BusinessWorld