India Indonesia Trade
Indonesia is the second largest trading destination for India in the ASEAN region.
Last updated: Feb, 2025
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 has emerged as the third largest export and largest import trading partner of India in the ASEAN region in FY24.
- The bilateral trade between India and Indonesia stood at US$ 29.39 billion in FY24.
- Indonesia occupies the 36th position in FDI equity inflows into India with a cumulative FDI amount of US$ 658.64 million (April 2000-September 2024).
Major exported items from India to Indonesia with amount & quantity
- India exported 3,794 commodities to Indonesia in FY24.
- India’s export to Indonesia stood at US$ 5.99 billion in FY24.
- Major exported items from India to Indonesia include engineering goods (US$ 1,270.03 million), followed by petroleum products (US$ 591.77 million), organic and inorganic chemicals (US$ 307.99 million), others (US$ 165.61 million) and Oil seeds (US$ 161.29 million) during April-October 2024.
- India’s export to Indonesia stood at US$ 3.4 billion during April-October 2024.
Major imported items by India from Indonesia with amount & quantity
- India imported 2,085 commodities from Indonesia in FY24.
- India’s import from Indonesia stood at US$ 23.41 billion in FY24.
- Major items imported by India from Indonesia include mineral fuels, oils and waxes (US$ 5,498.48 million); followed by animal or vegetable fats and oils and their cleavage products (US$ 2,475.34 million), iron and steel (US$ 1,172.70 million), ores, slag and ash (US$ 721.78 million), natural or cultured pearls, precious or semiprecious stones (US$ 640.24 million), during April-October 2024.
- India’s imports from Indonesia stood at US$ 14.16 billion during April-October 2024.
Economic Relations and Investments
The economic relations between India and Indonesia have been growing significantly. Indonesia has risen to become the largest trading partner of India in the ASEAN region after Singapore. In 2023-24, Indonesia exported products worth US$ 23.41 billion to India. The total bilateral trade in 2023-24 reached a record US$ 29.4 billion. Both countries have set a target of US$ 50 billion in trade by 2025.
Recent Trends & developments
- In November 2023, Raksha Mantri Mr. Rajnath Singh met with Indonesian Defence Minister Mr. Prabowo Subianto during the 10th ASEAN Defence Ministers’ Meeting - Plus in Jakarta. Singh praised Indonesia's leadership in ASEAN and the organization of the event. The ministers discussed strengthening bilateral defence ties, particularly in the maritime sector, and reviewed ongoing training and exercises. They also explored collaboration in the defence industry and noted their co-chairing of the Expert Working Group (EWG) on Humanitarian Assistance and Disaster Relief (HADR) for 2021-2024.
- 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 June 17, 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 June 17, 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.
- India and Indonesia launched a new trade channel on July 16, 2023 to better combat global issues and significantly enhance bilateral cooperation between the two nations. The newly inked India-Indonesia Economic and Financial Dialogue will look at bilateral investment, financial services, and infrastructure development as its areas of cooperation.
- India and Indonesia are soon going to have real-time settlement and trading in local currencies, Senior Government Officials said on the sideline of G20 Finance Minister Central Bank Governors’ (FMCBG) meeting under India’s presidency.
- India and Indonesia have jointly declared the commencement of the India–Indonesia Economic and Financial Dialogue (EFD Dialogue) on July 2023. The EFD Dialogue aims to enhance collaboration between the two nations, fostering a shared understanding of global issues. It pledges to provide a distinctive platform for mutual learning and policy coordination, thereby reinforcing the commitment to strengthen cooperation.
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
Ambassador - Mr. Sandeep Chakravorty, Ambassador;
Email: amb.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
Ambassador - Ms. Ina Hagniningtyas Krisnamurthi
Deputy Chief of Mission – Mr. Masni Eriza
Partners
