Sector
Trading
Indonesia, a developing country rich in natural resources and boasting the 4th largest population in the world, maintains an extensive trade presence. In 2023, the national trade balance reached US$480.7 billion, having grown significantly compared to the pre-pandemic period in 2019, when it stood at US$338.96 billion. Moreover, as of March 2024, the country has officially recorded a trade balance surplus for its 47th consecutive month.
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Trading
Indonesia, a developing country rich in natural resources and boasting the 4th largest population in the world, maintains an extensive trade presence. In 2023, the national trade balance reached US$480.7 billion, having grown significantly compared to the pre-pandemic period in 2019, when it stood at US$338.96 billion. Moreover, as of March 2024, the country has officially recorded a trade balance surplus for its 47th consecutive month.
In terms of exports, Indonesia’s top export commodity has historically been mineral-based fuels, especially coal. However, in the global market, Indonesia is a superpower in the exports of vegetable oils, particularly palm oil, having captured roughly 20 percent of the market with a total export value of US$35.2 billion in 2022. Behind that, Indonesia also leads in nickel exports, with a total export value reaching US$5.8 trillion or 14 percent of global exports.
In 2023, China emerged as Indonesia’s top partner for both exports and imports, with a total annual value of US$62.3 billion and US$62.2 billion, respectively. Meanwhile, the nation’s next top export destination is the US, with a total annual value of US$ 23.2 billion, while the next top import country of origin is Japan, with a total annual value of US$ 16.4 billion.
For trades on the level of individual consumers, the main driver of growth has been the rise in e-commerce throughout the past few years. E-commerce gross market value (GMV) grew by 20 percent from US$48 billion in 2021 to US$58 billion in 2022. This growth persisted to 2023, as e-commerce GMV grew by 7 percent to US$62 billion. E-commerce grew rapidly as it provided a means for Indonesian consumers to maintain access to goods and services during the pandemic period of 2020-2022. However, by the time the pandemic ended, e-commerce had grown ubiquitous and became a staple in the day-to-day lives of the average Indonesian.
Meanwhile, the domestic retail sector in Indonesia is driven by the sale of automotives. The retail of automotives alone in the country reached a gross domestic product (GDP) of US$174.35 billion in 2023, contributing to roughly 13.53 percent of Indonesia’s total GDP of US$1.3 trillion for that year at current market prices. Moreover, the country also achieved a per capita GDP of US$ 4,919.
Strong trade growth followed by increasing access to goods has bolstered local consumer confidence in Indonesia despite the period of uncertainty throughout 2023. According to Bank Indonesia’s monthly consumer confidence survey, Indonesians entered 2024 with high confidence, with the confidence index rising from 123.8 in December 2023 to 125.0 in January 2024. Moreover, this increase is even higher compared to same period the previous year, as a consumer confidence index of 123.0 was recorded for January 2023.
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The corruption scandal engulfing the National Nutrition Agency (BGN) has significantly amplified public skepticism toward President Prabowo Subianto’s flagship free nutritious meal program. What began as policy criticism has since escalated into street protests.
By late June 2026, the Attorney General’s Office (AGO) had named six suspects in an alleged graft case involving the governance of the program for the 2025–2026 fiscal years. The suspects include three former senior BGN officials, alongside Asep Yusuf Somantri, a close associate of former BGN deputy head Sony Sonjaya; Andri Mulyono, a commissioner at PT Yasa Artha Trimanunggal; and Glory Harimas Sihombing, chairman of the Indonesia Food Security Review Foundation.
The investigation deepened when Sonjaya reportedly disclosed 41 names allegedly involved in the illicit trading of Nutrition Fulfillment Service Unit (SPPG) locations. While Sonjaya sought justice collaborator status, prosecutors rejected the request, arguing that he functioned as a principal actor rather than a secondary participant capable of exposing higher-ranking figures. Meanwhile, the AGO has left open the possibility of questioning the newly appointed BGN head, Naniek S. Deyang. Because Deyang previously served as the agency's deputy head, her promotion has drawn sharp scrutiny from observers who argue that promises of institutional reform ring hollow when leadership changes amount to little more than an internal reshuffle.
Constitutional review petitions challenging the diversion of education funds for the free meals program are currently being examined by the Constitutional Court. Chief Justice Suhartoyo indicated that the court aims to conclude its review of the three petitions by the end of June, with formal rulings expected in July. This judicial process will be pivotal, not only for determining the legitimacy of this specific funding mechanism but also for clarifying the limits of executive discretion over constitutionally protected public resources.
As these legal battles unfold, public opposition on the ground has intensified. Dissatisfaction has manifested in a wave of nationwide demonstrations, accompanied by broader criticism of President Prabowo's governing style, which protesters link to contemporary economic hardships. This unrest has mobilized diverse coalitions of students, women's groups and civil society members across major urban centers, including Makassar, South Sulawesi; Denpasar, Bali; Bandung, West Java; Semarang, Central Java; and Jakarta.
Political researchers argue that this widespread friction cannot be uncoupled from perceptions of an increasingly centralized, top-down governance model. The fact that dissent now extends well beyond traditional student movements suggests that concerns over the program are no longer confined to political activists, but are resonating deeply at the grassroots level.
Conversely, a distinct counter-mobilization has surfaced. Employees and operators of the SPPGs recently rallied near the National Monument in Jakarta to voice their support for the initiative. Teachers, students, kitchen staff and service unit owners participated in the demonstration, emphasizing the program's tangible nutritional benefits and demanding its uninterrupted continuation.
However, political observers caution against interpreting these pro-program rallies as entirely spontaneous expressions of public goodwill. Governments facing crises of legitimacy have historically relied on structured counter-narratives and organized support bases to reshape public perception.
The timing of these pro-free meals demonstrations is also telling, coinciding with the BGN's decision to temporarily suspend the program during the 18-day school vacation period. During this hiatus, SPPG operators forfeit the Rp 6 million (US$335) daily operational incentives typically provided by the government.
Even if support for the continuation of the program is entirely authentic, it is heavily viewed through the lens of economic self-interest. This shifts the broader debate surrounding who truly represents the program’s rightful beneficiaries. While the initiative was originally designed to improve childhood nutrition and elevate educational outcomes, the controversy has increasingly centered on the commercial actors embedded within its implementation chain.
