Indonesia - Australia Trade 2023 Q2: Stagnant Deficit
Key Market Takeaways: Indonesia - Australia Trade
The bilateral trade relationship between Indonesia and Australia remains stagnant with no growth observed in Q2 2023.
- Economic Pulse: Indonesia runs a $1.55B trade deficit with Australia, driven by heavy reliance on Australian imports ($2.31B) outweighing exports ($764.54M). Volatility spiked in May before correcting in June.
- Exchange Structure: The trade is resource-for-resource, dominated by HS 27 (Mineral fuels, oils) on both sides—22.14% of Indonesia’s imports and 11.27% of exports. Indonesia-Australia trade statistics reveal mutual energy sector dependency.
- Strategic Interdependence: Both economies exchange raw materials with limited value-add, signaling untapped potential for diversification beyond commodities.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Indonesia-Australia Trade Trend in Q2 2023
Indonesia Export Performance: Shipments to Australia
- Total Volume: $764.54M in Q2 2023.
- Growth Trend & Context: YoY growth flat (0.0% across all months). No significant policy shifts or disruptions noted.
- Key Volatility: May saw a 20.56% MoM surge, followed by a 7.54% drop in June.
Indonesia Import Performance: Sourcing from Australia
- Total Volume: $2.31B in Q2 2023.
- Growth Trend & Context: YoY growth stagnant (0.0%). No news-driven anomalies detected.
- Key Volatility: May imports spiked 32.37% MoM before an 11.02% correction in June.
Indonesia - Australia Trade Balance & Market Dynamics
- Net Position: Trade deficit of $1.55B (Imports exceeded exports).
- Relationship Status: Heavy reliance on Australian imports, with exports lagging significantly. No rebalancing observed in Q2.
Indonesia Import Trend from Australia 2023 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 659.62M | -15.88% | 0.0% |
| May | 873.14M | 32.37% | 0.0% |
| Jun | 776.90M | -11.02% | 0.0% |
| Total | 2.31B | - | - |
Indonesia Export Trend to Australia 2023 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 230.26M | -14.5% | 0.0% |
| May | 277.60M | 20.56% | 0.0% |
| Jun | 256.68M | -7.54% | 0.0% |
| Total | 764.54M | - | - |
Get Historical Indonesia Australia Trade Records
Indonesia-Australia Top Trading Products in Q2 2023
Indonesia Export Profile: What Does Indonesia Sell to Australia
- Top Commodity: Rank #1 export is HS 27 (Mineral fuels, oils) at 11.27% of total exports to Australia.
- Demand Driver: Australia likely imports these for energy needs or industrial processing.
- Concentration: No single category dominates; exports are relatively diversified.
Indonesia Import Profile: What Does Indonesia Buy from Australia
- Top Commodity: Rank #1 import is HS 27 (Mineral fuels, oils) at 22.14% of total imports from Australia.
- Dependency Nature: Reflects energy security dependency, as Australia supplies a significant share of Indonesia's fuel imports.
Indonesia - Australia Trade Relationship Dynamics
- The Exchange Model: Resource-for-Resource Trade—both countries exchange similar categories (HS 27 dominates both sides).
- Value Chain Position: Neither holds a clear higher value-add position; trade is skewed toward raw materials (fuels, ores, agricultural goods).
Import Analysis by Product: Australia to Indonesia (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 27 | 511.46M | 22.14% |
| 10 | 387.74M | 16.79% |
| 26 | 255.68M | 11.07% |
| 71 | 201.19M | 8.71% |
| 02 | 124.67M | 5.40% |
| 01 | 111.40M | 4.82% |
| 17 | 103.46M | 4.48% |
| 08 | 69.04M | 2.99% |
| 84 | 58.49M | 2.53% |
| 52 | 49.62M | 2.15% |
Export Analysis by Product: Indonesia to Australia (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 27 | 86.13M | 11.27% |
| 84 | 66.69M | 8.72% |
| 85 | 53.36M | 6.98% |
| 31 | 42.05M | 5.50% |
| 64 | 40.02M | 5.23% |
| 44 | 34.95M | 4.57% |
| 62 | 33.91M | 4.44% |
| 39 | 28.35M | 3.71% |
| 72 | 28.11M | 3.68% |
| 48 | 26.52M | 3.47% |
Check Detailed Indonesia-Australia Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Indonesia’s trade with Australia is likely to remain stagnant in the near term, with no immediate catalysts for growth given the flat YoY performance in Q2 2023. The persistent trade deficit, driven by heavy reliance on Australian energy imports, suggests structural imbalances will endure unless Indonesia diversifies its export base or secures alternative suppliers. Volatility in monthly trade flows, particularly in HS 27 (Mineral fuels, oils), indicates price sensitivity—traders should prepare for potential swings in Q3. Without policy interventions or new trade agreements, the Indonesia-Australia trade relationship will continue its resource-for-resource exchange, limiting value-added opportunities.
Strategic Moves
- Diversify Export Markets: Indonesian exporters must reduce dependence on Australia by targeting Southeast Asian and Middle Eastern markets for HS 27 products, leveraging regional demand for energy and processed fuels.
- Secure Long-Term Supply Contracts: Buyers of Australian mineral fuels should lock in fixed-price agreements to mitigate volatility, especially ahead of potential seasonal demand spikes in Q4.
- Invest in Downstream Processing: To shift from raw material exports, Indonesia should incentivize domestic refining capacity for HS 27 commodities, enabling higher-margin exports like petroleum products rather than crude oil.
Tactical Note: Monitor Australian energy policy shifts—any move to restrict fuel exports could force Indonesia to accelerate diversification efforts.
Frequently Asked Questions
How did Indonesia - Australia trade perform in 2023 Q2?
Indonesia's exports to Australia totaled $764.54M, while imports reached $2.31B, with flat YoY growth (0.0%) for both. The trade deficit stood at $1.55B, showing no rebalancing in
Q2.
What are the top exports from Indonesia to Australia?
The top export was HS 27 (Mineral fuels, oils), accounting for 11.27% of total exports. Indonesia's exports to Australia are relatively diversified.
What does Indonesia import from Australia?
The top import was also HS 27 (Mineral fuels, oils), making up 22.14% of total imports, reflecting Indonesia's energy security dependency on Australia.
What is the trade balance between Indonesia and Australia?
Indonesia recorded a trade deficit of $1.55B with Australia in Q2 2023, with imports significantly exceeding exports. No narrowing of the gap was observed.
Indonesia - Australia Trade 2023 Q1: Deficit & Resource Exchange
Indonesia's trade deficit with Australia hit $1.23B in Q1 2023, driven by machinery and cereals. Explore Indonesia Australia trade trends and top trading products via yTrade data.
Indonesia - Australia Trade 2023 Q3: Stagnant Growth, Energy Reliance
Indonesia's trade deficit with Australia hits $1.82B in Q3 2023, driven by energy imports. Explore Indonesia Australia trade trends and top trading products via yTrade data.
