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

July 16, 2026

The armed conflict plaguing Papua has intensified sharply over the past two weeks, compounding decades of violence that have long gripped the region. This latest escalation has once again prompted widespread calls for restraint, peaceful dialogue and a nonviolent approach to resolving the protracted crisis.

To date, the ongoing hostilities have claimed thousands of lives and driven the number of internally displaced persons (IDPs) in Papua to an estimated 122,000. While the West Papua National Liberation Army (TPNPB), the armed wing of the Free Papua Movement (OPM), has been blamed for a series of recent attacks, the operations conducted by the Indonesian Military (TNI) have also come under increasing scrutiny.

According to recent monitoring, much of the latest violence has been concentrated in the Sugapa and Agisiga districts of Intan Jaya, a mountainous regency in Central Papua.

The resulting toll highlights a grim pattern that began on June 27, when a soldier was killed and three others wounded. Two days later on June 29, three separate incidents resulted in the deaths of a church worker and a pastor, while two workers building a church in Titigi village were injured in a shooting. The bloodshed continued to July 2, when three other incidents claimed the lives of a pregnant woman, a church worker and a pastor.

A common thread running through these tragedies is the critical need for thorough, impartial investigations as competing narratives frequently obscure the truth. A stark example is the death of Melkiana Duwotau, who was pregnant when a bullet pierced the wall of her honai (traditional house) and struck her in the head, killing her.

The Intan Jaya administration reported that the gunfire was believed to have originated from the direction of a nearby TNI post. The military denied this, however, and the Habema Joint Regional Defense Command (Koops Habema) alleged that the shots were fired by an armed separatist group.

Questions also surround the July 2 death of church worker Okto Tigau, whom the military had identified as a member of an armed separatist group. Local accounts, however, described him as an ordinary civilian. The Papua office of the National Commission on Human Rights (Komnas HAM) said it received reports that Tigau had been missing since June 29. Two days later, his body was discovered with multiple stab wounds. Local sources allege he had been detained by security personnel.

The July 2 violence was not confined to Intan Jaya. In an incident that drew international attention, United States national Nicholas Francis Gosselin, a pilot with PT Associated Mission Aviation (AMA), was shot dead by separatist rebels after landing in Yahukimo, Papua Highlands. The attackers subsequently set his aircraft on fire.

Unlike other recent incidents, responsibility for this attack was openly claimed: TPNPB spokesperson Sebby Sambom said Gosselin’s killing was intended to send a "message" to both Jakarta and Washington over their failure to address the root causes of the conflict between the rebel group and the TNI. Sambom also alleged that the aircraft had repeatedly transported military personnel, violating the group’s ultimatum.

The tragedy recalls the high-profile hostage incident involving New Zealand pilot Phillip Mehrtens, who was abducted by Papuan rebels in February 2023 after landing a small commercial aircraft in Papua Highlands’ remote Nduga district. After more than a year in captivity, Mehrtens was finally released in September 2024.

The latest surge in bloodshed has renewed urgent calls from religious groups, as well as the legislature and the executive branch, for concrete de-escalation efforts.

The Indonesian Communion of Churches (PGI) has urged all parties to end all forms of violence and called for the immediate pursuit of peaceful dialogue as the only sustainable path forward. In the House of Representatives, Commission XIII member Yan Permenas Mandenas has called on the TNI commander to conduct a comprehensive evaluation of security operations across the volatile mountainous regions of Papua.

Meanwhile, the executive leadership has emphasized restraint and systemic reform. Deputy Human Rights Minister Mugiyanto called on both the TNI and the National Police to exercise maximum restraint. Human Rights Minister Natalius Pigai likewise stressed that achieving lasting peace in Papua could not be the responsibility of a single institution or ministry, arguing instead that a durable solution required the commitment and participation of all stakeholders.

Ultimately, this latest wave of violence serves as a stark reminder that the Papua conflict cannot be resolved through force alone. As competing narratives continue to emerge and civilians bear the brunt of the toll, ensuring strict accountability for each incident while creating space for credible, structured dialogue remains the only viable way to break a cycle of conflict that has persisted since the 1960s.

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