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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.
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Some 25 deputy ministers in President Prabowo Subianto Prabowo Subianto Djojohadikusumo, 72, is a retired Army lieutenant general, a businessman and the incumbent Defense Minister (2019-present). Due to his proximity to power throughout his military career, he entered politics in 2004 to pursue his dream of becoming the nation’s president. 's bloated cabinet currently hold concurrent positions as commissioners in various state-owned enterprises (SOEs), which appear to be rewards for helping him win the presidential race last year. This practice raises serious concerns about conflicts of interest and the abuse of power, potentially harming the state for the benefit of a select few individuals or groups, in addition to possible legal violations.
Among those serving dual roles are Deputy Villages, Disadvantaged Regions and Transmigration Minister Ahmad Riza Patria, who is also a commissioner for state telco company Telkomsel; Deputy Environment and Forestry Minister Diaz Faisal Malik Hendropriyono, who serves as president commissioner of Telkomsel; and Deputy Immigration and Corrections Minister Silmy Karim, who is a commissioner at Telkom Indonesia. The situation is further complicated by some of these deputy ministers being active members of political parties within the governing coalition, such as Ahmad Riza of the Gerindra Party and Diaz of the tiny Justice and Unity Party (PKP).
This practice has sparked public controversy as it appears to contradict Constitutional Court Decision No. 80/2019, which prohibits state officials from simultaneously holding positions in state-owned or private enterprises. However, Presidential Communications Office chief Hasan Nasbi has defended the government’s policy, asserting that the court's ruling does not explicitly prohibit deputy ministers from holding such concurrent posts, thus, in his view, it does not violate the decision.
The issue was formally challenged before the Constitutional Court on May 5 by Juhaidy Rizaldy, executive director of Indonesia Law and Democracy Studies (ILDES). Juhaidy challenged Article 23 of the State Ministry Law, which prohibits ministers from concurrently serving as other state officials, commissioners or directors in state-owned or private enterprises, or leaders of organizations funded by the state and/or regional budgets.
Juhaidy argued that Constitutional Court Decision No. 80/2019 had already established that deputy ministers, being appointed by the president and serving roles equivalent to ministers, are subject to the same restrictions outlined in Article 23(b) of the State Ministry Law. Although not a criminal offense, Juhaidy emphasized that this inherent conflict of interest presents a serious vulnerability, particularly if unregulated, increasing the risks of power abuse.
This issue was previously raised in 2023 by anticorruption watchdog Indonesia Corruption Watch (ICW), which questioned the concurrent appointments of four deputy ministers and dozens of other ministry officials. At that time, the SOEs Ministry (34 individuals), Finance Ministry (18) and Public Works and Housing Ministry (nine) were cited for having the most bureaucrats in dual roles. Deputy ministers then serving as SOE commissioners included Rosan P. Roeslani (deputy SOEs minister) at Pertamina, Suahasil Nazara (deputy finance minister) at state-owned electricity company PLN, Muhammad Herindra (deputy defense minister) at PT Len Industri and Kartika Wirjoatmodjo (deputy SOEs minister) at Bank Rakyat Indonesia (BRI).
ICW argued that these dual roles violate Article 17(a) of Law No. 25/2009 on public services, which explicitly prohibits public servants from concurrently serving as commissioners or executives in business entities.
In 2023, Yeka Hendra Fatika, an Indonesian Ombudsman member, urged the government to address these "maladministration" cases to preserve public trust. The practice undeniably creates substantial potential for conflicts of interest and raises questions about officials' ability to effectively fulfill their public service responsibilities.
