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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.

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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

August 31, 2026

Imagine a corrupt official who has stolen billions of rupiah from state coffers. Under a proposal floated by President Prabowo Subianto , that official could walk free, no conviction, no prison, simply by handing the money back. It sounds like restitution; critics say it looks a lot like a pardon with a price tag. The proposal, outlined in Prabowo's Aug. 14 State of the Nation Address, would offer amnesty to corruptors who return stolen state funds. It has reignited a debate that cuts to the heart of his presidency: Is Indonesia's war on corruption for real, or is it starting to look negotiable?

The plan was framed as pragmatic: recover the money first, worry about punishment later. But it raises an uncomfortable question. If corrupt officials can buy their way out of consequences by returning even part of what they stole, what does that say about the government's actual commitment to accountability?

The stakes are high precisely because Prabowo built his political brand on the opposite promise. He came to office vowing an uncompromising fight against graft, calling corruption one of Indonesia's greatest obstacles to prosperity and warning state officials to clean up their act or face consequences. But rhetoric and policy are not always the same thing.

Forgiving corruptors in exchange for asset restitution marks a real departure from a long-standing principle: that corruption is a punishable crime, regardless of whether the money is eventually returned. Indonesia Corruption Watch (ICW) has pointed out that the Corruption Law explicitly says returning state losses does not erase criminal liability.

Critics warn the proposal risks sending a dangerous signal: that corruption could become a crime that perpetrators can simply pay their way out of rather than one with unavoidable legal consequences.

Defenders counter that recovering stolen assets should be the priority. Returning trillions of rupiah to state coffers, they argue, may benefit the public more than locking up offenders. But that argument invites its own follow-up question: If asset recovery really is the priority, why has the government shown so little urgency in advancing the long-stalled asset forfeiture bill (RUU Perampasan Aset), a reform that many anticorruption experts consider one of the most important tools Indonesia could adopt?

Enacting that bill would strengthen the state's power to seize illicitly acquired wealth.

For years, activists have argued that corrupt actors should lose not just their freedom but the financial fruits of their crimes. Yet the legislation remains stuck. While the delay can't be pinned on the President alone, critics note that a leader's true priorities tend to show up in what they spend political capital on, and the absence of a genuine push for this bill undermines the claim that asset recovery sits at the center of Prabowo’s anticorruption strategy.

Doubts about the President 's commitment extend beyond this one proposal. His administration has supported or approved clemency and amnesty measures for those convicted in high-profile corruption cases. ICW and Transparency International Indonesia have both warned that such interventions risk weakening the principle of equal treatment under the law and could create the impression that political considerations are shaping judicial outcomes.

Just as telling is the limited attention paid to strengthening anticorruption institutions. Since the 2019 revision of the KPK Law, many experts argue the country's premier antigraft agency has been weakened significantly. A president genuinely committed to structural reform might be expected to prioritize restoring the KPK's independence and authority. So far, though, there's little sign that's happening. Observers increasingly note that the government talks often about corruption but shows far less enthusiasm for rebuilding the institutions needed to fight it systematically.

To be fair, anticorruption law enforcement hasn't disappeared under Prabowo. Major investigations have continued, including high-profile cases involving senior executives at state-owned enterprises, such as Pertamina. Supporters cite these cases as proof the government is serious and willing to pursue powerful figures. But anticorruption success can't be measured by case count alone. Individual prosecutions matter, but lasting progress depends on strong institutions, robust laws and credible deterrents. And on that front, the concerns keep piling up.

Taken together, the proposed amnesty for restitution, the stalled asset forfeiture bill, the use of clemency in corruption cases and the lack of momentum on KPK reform form a pattern that's hard to dismiss as coincidence. No single one of these developments proves Prabowo has abandoned the fight against corruption. But together, they raise a legitimate question: Is his administration pursuing deep structural reform or merely practicing selective enforcement?

The issue isn't whether the President opposes corruption; his public statements leave little doubt that he does. The more consequential question is whether he's willing to pursue the institutional and legal reforms needed to eradicate it, even when doing so threatens powerful interests. Until there's stronger evidence of that, doubts about the depth of his commitment aren't going away.

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