Indonesia - Australia Trade 2023 Q3: Stagnant Growth, Energy Reliance

Key Market Takeaways: Indonesia - Australia Trade

The bilateral trade relationship between Indonesia and Australia remains stagnant with flat growth in Q3 2023.

• $3.38B total trade, but Indonesia runs a $1.82B deficit—driven by heavy reliance on Australian energy imports.
• Resource-for-Tech Complementarity: Indonesia exports diversified consumer goods (apparel, machinery) while Australia dominates with mineral fuels (24.6% share), per Indonesia - Australia trade statistics.
• Unbalanced but stable: Australia holds higher value-add in energy, while Indonesia’s exports face low-margin competition.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Indonesia-Australia Trade Trend in Q3 2023

Indonesia Export Performance: Shipments to Australia

• Total Volume: $783.03M in Q3 2023.
• Growth Trend & Context: YoY growth flat (0.0%), indicating stagnant demand. No trade policy shifts or disruptions noted.
• Key Volatility: August saw a 23.11% MoM surge, followed by a -5.54% correction in September.

Indonesia Import Performance: Sourcing from Australia

• Total Volume: $2.60B in Q3 2023.
• Growth Trend & Context: YoY growth flat (0.0%), reflecting steady procurement. No supply shocks reported.
• Key Volatility: July imports spiked 13.14% MoM, then dropped -7.64% in September.

Indonesia - Australia Trade Balance & Market Dynamics

• Net Position: Trade deficit of $1.82B (Imports exceed exports).
• Relationship Status: Heavy reliance on Australian imports, with exports failing to offset the gap. Trade remains unbalanced.

Indonesia Import Trend from Australia 2023 Q3 (Source: yTrade)**

Indonesia Export Trend to Australia 2023 Q3 (Source: yTrade)**

Get Historical Indonesia Australia Trade Records

Indonesia-Australia Top Trading Products in Q3 2023

Indonesia Export Profile: What Does Indonesia Sell to Australia

• Top Commodity: Electrical machinery (HS 85) at 7.90% share.
• Demand Driver: Australia imports consumer goods (apparel, footwear) and industrial inputs (wood, paper) from Indonesia, serving both retail and manufacturing sectors.
• Concentration: No single category dominates; exports are diversified across multiple sectors.

Indonesia Import Profile: What Does Indonesia Buy from Australia

• Top Commodity: Mineral fuels (HS 27) at 24.60% share.
• Dependency Nature: Energy security dependency, with Australia supplying critical oil and coal. Agricultural imports (HS 10, 02) also highlight food supply reliance.

Indonesia - Australia Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Indonesia exports consumer and intermediate goods, while Australia supplies energy and raw materials.
• Value Chain Position: Australia holds higher value-add in energy (HS 27), while Indonesia’s exports (e.g., apparel, wood) are lower on the value chain.

Import Analysis by Product: Australia to Indonesia (Source: yTrade)

Export Analysis by Product: Indonesia to Australia (Source: yTrade)

Check Detailed Indonesia-Australia Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Indonesia-Australia trade relationship is expected to remain stable in the near term, with muted growth due to flat YoY performance in both exports and imports. However, volatility in key commodities—such as Indonesia’s electrical machinery exports and Australia’s mineral fuel shipments—could create short-term opportunities for traders. The persistent trade deficit underscores Indonesia’s reliance on Australian energy imports, a trend unlikely to reverse without structural shifts. Over the next year, demand for Indonesian consumer goods and intermediate products may see gradual recovery, but exporters should prepare for competitive pricing pressures.

Strategic Moves

• Diversify Energy Suppliers: Indonesia must reduce dependency on Australian mineral fuels by securing alternative sources (e.g., Middle East, Africa) to mitigate supply chain risks and improve trade balance.
• Boost High-Value Exports: Indonesian exporters should pivot toward higher-margin tech and processed goods (e.g., electronics, refined palm oil) to capture more value in the Australia trade relationship.
• Lock in Long-Term Contracts: Australian energy buyers and Indonesian consumer goods suppliers should negotiate fixed-term agreements to stabilize pricing amid potential commodity volatility.

Frequently Asked Questions

How did Indonesia - Australia trade perform in 2023 Q3?

Indonesia's exports to Australia totaled $783.03M, with flat YoY growth (0.0%). Imports from Australia reached $2.60B, also showing no YoY change, reflecting stagnant trade volumes.

What are the top exports from Indonesia to Australia?

The top export was electrical machinery (HS 85), accounting for 7.90% of shipments. Other key sectors include consumer goods (apparel, footwear) and industrial inputs (wood, paper).

What does Indonesia import from Australia?

Indonesia primarily imports mineral fuels (HS 27), making up 24.60% of imports, along with agricultural products (HS 10, 02), highlighting energy and food supply reliance.

What is the trade balance between Indonesia and Australia?

Indonesia recorded a trade deficit of $1.82B with Australia in Q3 2023, driven by higher imports of energy and raw materials compared to exports.