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.
Latest News
The import bribery case implicating three customs officials has entered a new phase with the discovery of several safe houses in Jakarta, where investigators found a stash of money amounting to billions of rupiah. The emergence of what appears to be a sophisticated bribery network not only further erodes institutional credibility but also raises a deeper question: Can corruption at the Customs Office truly be eradicated?
The Corruption Eradication Commission (KPK) uncovered four apartment units in North Jakarta and a house in Ciputat, South Tangerang, Banten, that were being used as safe houses. Investigators seized gold bars and cash totaling Rp 40.5 billion (US$2.45 million) in multiple currencies including rupiah, United States dollars, Singapore dollars and Japanese from these locations, as well as from the offices of logistics firm Blueray Cargo and suspects’ residences.
During a series of sting operations on Feb. 4 in Jakarta and Lampung, the KPK arrested 17 Customs Office employees. A day later, it named six suspects including three customs officials: Rizal, who served as the enforcement and investigation director from 2024 to January 2026; Sisprian Subiaksono, head of enforcement and investigative intelligence; and Orlando Hamonangan, head of the intelligence section.
The three other suspects were Blueray Cargo executives: owner John Field, import documentation head Andri and operations manager Dedy Kurniawan. John surrendered to the KPK on Feb. 7 after initially attempting to evade arrest during the sting operations.
This graft case extends beyond a conventional bribery scheme, as it involves deliberate manipulation of the customs risk management system. Under normal procedures, imported goods are assigned to either the green channel, for low-risk shipments with minimal inspection, or the red channel, for shipments requiring detailed scrutiny.
However, investigators reportedly found that Orlando had ordered an adjustment to the scanning system’s setting by fixing a 70 percent parameter, which enabled Blueray’s shipments to be routed through the green channel regardless of their customs classification, including prohibited and restricted goods (LARTAS). As a result, various textile products marked as LARTAS, including counterfeit bags, shoes and branded clothing, were allowed entry without proper inspection.
At the same time, Blueray allegedly falsified import documentation to understate shipping volume and thereby reduce duties to around Rp 40 million per container, while it charged clients Rp 200 million in import fees.
Given that the firm reportedly handled 1,500–2,000 containers per month, the illicit customs scheme between October 2025 and January 2026 incurred enormous potential losses to the state through systemic revenue leakage. In return, customs officials involved in the scheme allegedly received monthly bribes of around Rp 7 billion between December 2025 and February 2026.
Investigators have uncovered additional violations in Blueray’s corporate structure. The company reportedly established at least 20 affiliated entities as nominal importers to mask the identities of the true importers. This violated regulations prohibiting a single entity from acting as both freight forwarder and importer, since such an arrangement would significantly complicate traceability and enforcement.
The broader economic context amplifies the seriousness of the case. Indonesia’s textile industry has been under pressure from dumping practices, particularly by Chinese firms, amid global overcapacity and weakening demand. These combined pressures have led to factory closures and layoffs, including at major firms such as textile manufacturer PT Sri Rejeki Isman (Sritex).
While Customs and Excise Director General Djaka Budi Utama has yet to make a public statement on the matter, the KPK has indicated it may summon him for questioning related to the potential involvement of senior officials.
The reoccurrence of graft cases has prompted Finance Minister Purbaya Yudhi Sadewa to issue a stark warning: The Customs Office must undergo fundamental reform within a year or face a potential institutional freeze. Alternatively, Purbaya has floated a possibility of stripping the office of its responsibilities and appointing an external operator like Société Générale de Surveillance (SGS), reviving an arrangement implemented under former president Soeharto in 1985–1997.
Given the apparent systemic corruption at the Customs Office, reintroducing external oversight through a credible organization may warrant rigorous consideration. While not a panacea, such a move could disrupt entrenched networks, restore business confidence and safeguard state revenues.
