India-Indonesia trade expands over nine-fold to US$ 38.84 billion, strengthening Comprehensive Strategic Partnership
- IBEF
- July 7, 2026
Prime Minister Mr. Narendra Modi will undertake a three-day official visit to Indonesia from July 6–8, 2026, marking his first bilateral visit since the two countries elevated ties to a Comprehensive Strategic Partnership in 2018. The visit is expected to review bilateral relations and expand cooperation across trade, investment, connectivity and strategic sectors. Indonesia has emerged as India's second-largest trading partner in the ASEAN region, with bilateral trade rising from Rs. 19,040 crore (US$ 4.30 billion) in 2005-06 to Rs. 3,12,235 crore (US$ 38.84 billion) in 2022-23. In 2024-25, total bilateral trade stood at Rs. 2,39,275 crore (US$ 28.15 billion). India exported goods worth Rs. 45,730 crore (US$ 5.38 billion) while imports from Indonesia reached Rs. 1,93,630 crore (US$ 22.78 billion) during the year. India is the second-largest buyer of Indonesian coal and the largest importer of Indonesian crude palm oil, while also sourcing minerals, rubber, hydrocarbons, pulp and paper. Indian exports include refined petroleum products, commercial vehicles, telecommunications equipment, agricultural commodities, steel products, plastics and bovine meat.
Economic engagement has also strengthened through rising investments and enhanced people-to-people connectivity. Indian companies have invested Rs. 14,884 crore (US$ 1.56 billion) across 7,292 projects in Indonesia between 2000 and 2024, while Indonesia’s cumulative investment in India reached Rs. 6,377 crore (US$ 668.37 million) between January 2000 and September 2025. Around 100 Indian companies and joint ventures currently operate in Indonesia across diverse sectors. Bilateral trade has maintained strong momentum in recent years, increasing from Rs. 1,29,796 crore (US$ 17.49 billion) in 2020-21 to Rs. 1,95,032 crore (US$ 26.17 billion) in 2021-22, reaching Rs. 3,12,235 crore (US$ 38.84 billion) in 2022-23, before moderating to Rs. 2,43,432 crore (US$ 29.40 billion) in 2023-24 and Rs. 2,39,275 crore (US$ 28.15 billion) in 2024-25. During April 2025-February 2026, bilateral trade had already reached Rs. 2,00,777 crore (US$ 22.72 billion). Tourism and air connectivity have also expanded, with Air India increasing Delhi-Bali services from seven to 10 weekly flights, and four direct air routes now connecting the two countries: Jakarta-Mumbai, Bali-Bengaluru, Bali-Mumbai and Bali-Delhi. India was the second-largest source of tourists to Bali in 2023, while 7.1 lakh Indian visitors travelled to Indonesia in 2024, reflecting stronger business and tourism ties between the two countries.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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