Indonesia - Australia Trade 2023 Q1: Deficit & Resource Exchange
Key Market Takeaways: Indonesia - Australia Trade
The bilateral trade relationship between Indonesia and Australia reflects a volatile but structurally complementary exchange in Q1 2023.
- Deficit-Driven Trade: Indonesia posted a $1.23B trade deficit with Australia (imports: $2.00B, exports: $769.11M), with mixed YoY growth in both flows.
- Resource-for-Tech Exchange: Indonesia - Australia trade statistics show machinery (HS 84, 9.61%) and cereals (HS 10, 20.67%) as top traded goods, highlighting a resource-for-manufactured goods dynamic.
- Asymmetric Interdependence: Australia’s upstream dominance in raw materials (cereals, minerals) contrasts with Indonesia’s mid-tier manufacturing exports, creating a lopsided but mutually beneficial dependency.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Indonesia-Australia Trade Trend in Q1 2023
Indonesia Export Performance: Shipments to Australia
- Total Volume: $769.11M in Q1 2023.
- Growth Trend & Context:
- YoY growth was mixed, with January showing a slight uptick (+0.77%) followed by declines in February (-3.58%) and March (-0.89%).
- No specific trade news or policy changes were reported to explain these fluctuations.
- Key Volatility: February saw a sharp MoM drop (-14.96%), followed by a rebound in March (+17.24%).
Indonesia Import Performance: Sourcing from Australia
- Total Volume: $2.00B in Q1 2023.
- Growth Trend & Context:
- YoY growth started strong in January (+7.6%) but turned negative in February (-0.32%) and March (-6.86%).
- No external events were cited to explain the decline.
- Key Volatility: March recorded the highest import value ($784.12M) with a significant MoM jump (+26.09%).
Indonesia - Australia Trade Balance & Market Dynamics
- Net Position: Indonesia ran a trade deficit of $1.23B (Imports $2.00B > Exports $769.11M).
- Relationship Status: Heavy reliance on Australian imports, with exports failing to offset the imbalance.
Indonesia Import Trend from Australia 2023 Q1 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jan | 591.43M | 0.0% | 7.6% |
| Feb | 621.87M | 5.15% | -0.32% |
| Mar | 784.12M | 26.09% | -6.86% |
| Total | 2.00B | - | - |
Indonesia Export Trend to Australia 2023 Q1 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Jan | 270.11M | 0.0% | 0.77% |
| Feb | 229.69M | -14.96% | -3.58% |
| Mar | 269.30M | 17.24% | -0.89% |
| Total | 769.11M | - | - |
Get Historical Indonesia Australia Trade Records
Indonesia-Australia Top Trading Products in Q1 2023
Indonesia Export Profile: What Does Indonesia Sell to Australia
- Top Commodity: Machinery and mechanical appliances (HS Code 84) dominate exports, accounting for 9.61% of total exports to Australia.
- Demand Driver: Australia imports Indonesian machinery and electrical equipment (HS Code 85, 9.09%) likely for industrial and consumer use, indicating a mix of industrial and consumer market demand.
- Concentration: No single category dominates; the top 3 exports (HS Codes 84, 85, 27) collectively make up 26.5% of total exports, showing moderate diversification.
Indonesia Import Profile: What Does Indonesia Buy from Australia
- Top Commodity: Cereals (HS Code 10) lead imports with a 20.67% share, followed closely by mineral fuels (HS Code 27) at 20.34%.
- Dependency Nature: Heavy reliance on Australian cereals and mineral fuels points to food security and energy/raw material dependencies. The high share of ores (HS Code 26, 8.35%) reinforces raw material dependency.
Indonesia - Australia Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity. Indonesia exports machinery and consumer goods to Australia while importing agricultural products and raw materials, reflecting a classic resource-for-manufactured goods exchange.
- Value Chain Position: Australia holds the higher value-add position in raw materials (e.g., cereals, mineral fuels), while Indonesia supplies mid-tier manufactured goods (machinery, textiles). The trade skew suggests Australia is the upstream supplier, Indonesia the downstream processor.
Import Analysis by Product: Australia to Indonesia (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 10 | 412.96M | 20.67% |
| 27 | 406.33M | 20.34% |
| 71 | 244.33M | 12.23% |
| 26 | 166.73M | 8.35% |
| 02 | 87.46M | 4.38% |
| 01 | 73.06M | 3.66% |
| 17 | 65.32M | 3.27% |
| 52 | 61.02M | 3.05% |
| 84 | 45.91M | 2.30% |
| 72 | 45.50M | 2.28% |
Export Analysis by Product: Indonesia to Australia (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 73.89M | 9.61% |
| 85 | 69.91M | 9.09% |
| 27 | 59.98M | 7.80% |
| 64 | 44.25M | 5.75% |
| 62 | 43.67M | 5.68% |
| 44 | 42.50M | 5.53% |
| 48 | 37.05M | 4.82% |
| 39 | 29.97M | 3.90% |
| 18 | 21.34M | 2.77% |
| 38 | 21.29M | 2.77% |
Check Detailed Indonesia-Australia Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Indonesia’s trade deficit with Australia is likely to persist in Q2 2023, driven by continued demand for Australian cereals and mineral fuels. However, the rebound in March exports—particularly machinery and electrical equipment—suggests potential for modest export growth if industrial demand holds. Volatility in monthly trade flows indicates short-term uncertainty, but the structural complementarity (resource-for-tech exchange) provides a stable foundation for long-term trade expansion. Traders should monitor Australian agricultural output and energy policies, as these will heavily influence Indonesia’s import costs.
Strategic Moves
- Diversify Export Markets: Indonesian exporters of machinery (HS Code 84) and electrical equipment (HS Code 85) should aggressively target other Asia-Pacific markets to reduce reliance on Australian demand and mitigate trade deficit risks.
- Lock in Long-Term Supply Contracts: Given Indonesia’s heavy dependence on Australian cereals and mineral fuels, importers should negotiate multi-year agreements to hedge against price volatility and ensure stable raw material inflows.
- Invest in Upgraded Logistics: To capitalize on rebound opportunities in machinery exports, Indonesian firms must streamline cross-border shipping and reduce lead times, ensuring competitiveness against regional rivals like Vietnam and Thailand.
Frequently Asked Questions
How did Indonesia - Australia trade perform in 2023 Q1?
Indonesia's exports to Australia totaled $769.11M, with mixed YoY growth, while imports from Australia reached $2.00B, showing a decline in later months.
What are the top exports from Indonesia to Australia?
The top exports include machinery and mechanical appliances (HS Code 84), electrical equipment (HS Code 85), and mineral fuels (HS Code 27), collectively making up 26.5% of total exports.
What does Indonesia import from Australia?
Indonesia primarily imports cereals (HS Code 10), mineral fuels (HS Code 27), and ores (HS Code 26) from Australia, reflecting dependencies on food and raw materials.
What is the trade balance between Indonesia and Australia?
Indonesia recorded a trade deficit of $1.23B with Australia in Q1 2023, driven by higher imports of agricultural and mineral products.
Indonesia - Australia Trade 2023 Whole Year: $6.12B Deficit
Indonesia's trade deficit with Australia hit $6.12B in 2023, driven by resource-for-tech exchange. Explore Indonesia Australia trade trends and top trading products via yTrade data.
Indonesia - Australia Trade 2023 Q2: Stagnant Deficit
Indonesia's $1.55B trade deficit with Australia highlights stagnant Q2 2023 trends. Mineral fuels dominate Indonesia Australia trade trends, per yTrade data.
