Indonesia - Australia Trade 2023 Q4: Deficit & Resource Exchange

Key Market Takeaways: Indonesia - Australia Trade

The bilateral trade relationship between Indonesia and Australia remains structurally imbalanced, with Indonesia running a persistent trade deficit in Q4 2023.

• Deficit-Driven Trade: Indonesia’s imports from Australia ($2.39B) dwarf exports ($861.68M), creating a $1.53B deficit. Volatility in monthly flows (e.g., December’s 25.6% export surge) masks flat YoY growth.
• Resource-for-Industrial Exchange: Indonesia - Australia trade statistics reveal a Resource-for-Tech Complementarity—Indonesia supplies iron/steel (11.21% of exports) while relying on Australian mineral fuels (25.19% of imports) and machinery.
• Asymmetric Interdependence: Australia holds the high-value position as an energy and tech supplier, while Indonesia’s exports remain concentrated in industrial inputs.

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

Indonesia-Australia Trade Trend in Q4 2023

Indonesia Export Performance: Shipments to Australia

• Total Volume: $861.68M in Q4 2023.
• Growth Trend & Context: YoY data shows 0.0% change, indicating stable demand. No significant policy shifts or disruptions noted.
• Key Volatility: December saw a sharp 25.6% MoM surge, offsetting November’s -10.18% dip.

Indonesia Import Performance: Sourcing from Australia

• Total Volume: $2.39B in Q4 2023.
• Growth Trend & Context: YoY flat at 0.0%, suggesting steady supply chains. No news-driven disruptions.
• Key Volatility: December imports peaked at $920.99M (+16.75% MoM), while October dipped -17.33% MoM.

Indonesia - Australia Trade Balance & Market Dynamics

• Net Position: Trade deficit of $1.53B (Imports exceed exports).
• Relationship Status: Heavy reliance on Australian imports, with exports lagging. Structural imbalance persists.

Indonesia Import Trend from Australia 2023 Q4 (Source: yTrade)**

Indonesia Export Trend to Australia 2023 Q4 (Source: yTrade)**

Get Historical Indonesia Australia Trade Records

Indonesia-Australia Top Trading Products in Q4 2023

Indonesia Export Profile: What Does Indonesia Sell to Australia

• Top Commodity: Rank #1 Export is HS Code 73 (Iron and steel articles), accounting for 11.21% of total exports to Australia.
• Demand Driver: These exports are primarily industrial inputs, suggesting Australia uses them for construction or manufacturing.
• Concentration: No single category dominates; the top 10 exports are relatively diversified, with the largest share at 11.21%.

Indonesia Import Profile: What Does Indonesia Buy from Australia

• Top Commodity: Rank #1 Import is HS Code 27 (Mineral fuels, oils, and related products), making up 25.19% of total imports from Australia.
• Dependency Nature: This reflects energy security dependency, as Australia supplies critical fuel resources.

Indonesia - Australia Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Indonesia exports industrial goods (iron/steel) and imports energy (mineral fuels) and machinery (HS 84, 85).
• Value Chain Position: Australia holds a higher value-add position, supplying energy and advanced machinery, while Indonesia exports lower-value industrial inputs.

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 for Indonesia-Australia Trade

The Indonesia-Australia trade relationship is expected to remain stable in the near term, with modest growth potential. Given the persistent trade deficit and Indonesia’s reliance on Australian energy imports, demand for mineral fuels (HS 27) will likely stay strong, while Indonesian exports of industrial inputs (e.g., iron and steel) could see gradual expansion if Australia’s construction sector remains active. However, without significant policy intervention or diversification efforts, the structural imbalance may persist. Traders should anticipate steady volumes but prepare for potential price volatility in key commodities like fuel and steel.

Strategic Moves for Traders & Policymakers

• Diversify Export Markets: Indonesian exporters should aggressively target alternative markets for industrial goods to reduce over-reliance on Australia and mitigate trade deficit risks.
• Lock in Energy Supply Contracts: Given Indonesia’s dependency on Australian mineral fuels, importers should secure long-term agreements to hedge against price fluctuations and ensure stable supply.
• Invest in Value-Added Production: To shift the trade dynamic, Indonesia must prioritize upgrading its industrial base—moving beyond raw material exports to higher-value machinery and processed goods, which could attract greater demand from Australia.

Frequently Asked Questions

How did Indonesia - Australia trade perform in 2023 Q4?

Indonesia's exports to Australia totaled $861.68M, while imports reached $2.39B, both showing 0.0% YoY growth, indicating stable trade volumes.

What are the top exports from Indonesia to Australia?

Iron and steel articles (HS Code 73) were the top export, accounting for 11.21% of total shipments to Australia.

What does Indonesia import from Australia?

Mineral fuels, oils, and related products (HS Code 27) dominated imports, making up 25.19% of total purchases from Australia.

What is the trade balance between Indonesia and Australia?

Indonesia had a trade deficit of $1.53B with Australia in Q4 2023, driven by higher imports of energy and machinery.