India Indonesia Trade
India Indonesia Trade Agreement
Introduction
India and Indonesia have shared close cultural and commercial contact since the establishment of their relationship. The Hindu, Buddhist, and later Muslim faith travelled to Indonesia from the shores of India. The stories from the great epics of Ramayana and Mahabharata form sources of Indonesian folk art and dramas. The shared culture, colonial history and post-independence goals of political sovereignty, and independent foreign policy have a significant effect on bilateral relations.
India-Indonesia Trade
- Indonesia is the 2nd largest trading partner of India in the ASEAN region.
- The bilateral trade increased from US$ 6.9 billion in 2007 to US$ 21.01 billion in 2021 between India and Indonesia.
- Indonesia occupies the 33rd position in FDI equity inflows into India with a cumulative FDI amount of US$ 645.48 million (April 2000 to September 2022).
Major exported items from India to Indonesia with amount & quantity
- India exported 3,987 commodities to Indonesia in FY21.
- India’s export to Indonesia stood at US$ 8.47 billion in FY 2021-22.
- Major exported items from India to Indonesia include mineral fuels, mineral oils & products; bituminous substances; mineral waxes (US$ 2,352.14 million); followed by sugars and sugar confectionery (US$ 904.32 million) in FY21.
- India exported 3,620 commodities to Indonesia during April-October 2022.
- India’s export to Indonesia stood at US$ 6.7 billion during April-November 2022.
- Major exported items from India to Indonesia include petroleum products (US$ 2,609 million) followed by a ship, boat, and floating struct (US$ 343 million), etc. during April-November 2022.
Major imported items by India from Indonesia with amount & quantity
- India imported 2,137 commodities from Indonesia in FY21.
- India’s import from Indonesia stood at US$ 17.7 billion in FY 2021-22.
- Major items imported by India from Indonesia include mineral fuels, mineral oils & products; bituminous substances; mineral waxes (US$ 6,877.23 million); followed by animal or vegetable fats & oils & their cleavage products; animal vegetable waxes (US$ 4,123.29 million) in FY21.
- India imported 1,846 commodities from Indonesia during April-October 2022.
- India’s imports from Indonesia stood at US$ 21.4 billion during April-November 2022.
- Major items imported by India from Indonesia include coal, coke, and briquettes, etc. (US$ 11,778 million) followed by vegetable oils (US$ 3,952 million), etc. during April-November 2022.
Economic Relations and Investments
The economic relations between India and Indonesia have been growing significantly. Indonesia has risen to become 2nd largest trading partner of India in the ASEAN region after Singapore. During the first nine months of this year, Indonesia exported products worth US$ 17.93 billion to India creating history and turning India into its 4th largest export destination globally. The total bilateral trade during the first nine months of this year reached a record US$ 25.46 billion. Both countries have set a target of US$ 50 billion in trade by 2025.
Recent Trends & developments
- In 2022, The Reserve Bank of India (RBI) and the Bank Indonesia (BI) signed a Memorandum of Understanding (MoU) on Saturday in Bali, Indonesia, to improve mutual cooperation between them.
- Hon’ble National Security Advisor (NSA), H.E. Mr. Ajit Doval, and Dr. Mohammad Mahfud, Coordinating Minister of Political, Legal, and Security Affairs, signed a Memorandum of Understanding (MoU) for security dialogue to further strengthen cooperation on political and security issues.
- MoU between the Narcotics Control Bureau (NCB) of India and the National Narcotics Board of Indonesia on combating illicit trafficking in narcotic drugs, psychotropic substances, and their precursors was signed in the 7th Joint Commission Meeting (JCM) held in Delhi on 17th June 2022.
- MoU between National Sugar Institute, Kanpur, and Politeknic Perkebunan LPP, Yogyakarta was signed in the 7th Joint Commission Meeting (JCM) held in Delhi on 17th June 2022.
- In the defence sector, both countries have been working closely and organized Samudra Shakti, a bilateral maritime exercise, and Garuda Shakti, a joint military exercise, every year.
Conclusion
India and Indonesia had civilizational connections for more than two thousand years. Both countries being maritime neighbours and strategic partners have important and close relations. The two countries have the huge potential to grow further in the coming years with increasing bilateral and community relations.
Contacts
- Embassy of India, Indonesia
Address: Gama Tower, 28th floor, Jl. HR. Rasuna Said Kav. C22,
Karet Kuningan, Setiabudi, Kota Jakarta Selatan, Jakarta 12940
Telephone: +62 21 2522299
Email: info.jakarta@mea.gov.in
Officials
Shri. Manoj Kumar Bharti – Ambassador – amb.jakarta@mea.gov.in
Mr. Rajesh K. Dwivedi - SS(Commerce) – attcom.jakarta@mea.gov.in - Embassy of Indonesia, India
Address: 50-A Kautilya Marg, Chanakyapuri, New Delhi 110021
Mobile: +91-11- 26118642-45
Email: newdelhi.kbri@kemlu.go.id
Officials
Ina Hagniningtyas Krisnamurthi – Ambassador
Masni Eriza - Deputy Chief of Mission
Partners
