Indonesia - Australia Trade 2025 Q1: Widening Deficit

Indonesia's trade deficit with Australia hit $1.08B in Q1 2025, driven by resource-for-tech exchange. Explore Indonesia Australia trade trends & top trading products via yTrade data.

Key Market Takeaways: Indonesia - Australia Trade

The bilateral trade relationship between Indonesia and Australia shows volatility and a widening deficit in Q1 2025.

  • Economic Pulse: Indonesia posted a $1.08B trade deficit with Australia, with imports ($2.04B) more than double exports ($964.79M). Both flows saw sharp swings—February spikes and March drops signal unstable demand or supply chain adjustments.
  • Exchange Structure: Resource-for-Tech Complementarity defines Indonesia-Australia trade statistics. Indonesia supplies machinery and electronics (27% of exports), while relying on Australian mineral fuels (24% of imports) and ores for energy and raw materials.
  • Strategic Interdependence: The partnership hinges on Australia’s high-value raw materials and Indonesia’s mid-tier industrial exports, but volatility risks disrupting this balance.

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

Indonesia-Australia Trade Trend in Q1 2025

Indonesia Export Performance: Shipments to Australia

  • Total Volume: $964.79M in Q1 2025.
  • Growth Trend & Context:
    • YoY decline of -14.99% in January deepened to -35.88% by March, signaling sustained contraction.
    • February’s 47.19% MoM surge was offset by a -23.28% drop in March, indicating volatility.
  • Key Volatility: February’s export spike (47.19% MoM) was the quarter’s high point before March’s sharp reversal.

Indonesia Import Performance: Sourcing from Australia

  • Total Volume: $2.04B in Q1 2025.
  • Growth Trend & Context:
    • Mixed YoY performance: February’s 27.18% growth contrasted with January (-40.95%) and March (-4.56%).
    • February’s 83.88% MoM surge drove the quarter’s total, but March imports fell -18.93% MoM.
  • Key Volatility: February’s import value ($867.78M) peaked, nearly doubling January’s low ($471.92M).

Indonesia - Australia Trade Balance & Market Dynamics

  • Net Position: Trade deficit of $1.08B (Imports $2.04B > Exports $964.79M).
  • Relationship Status: Indonesia remains a net importer from Australia, with Q1 2025 imports more than double exports. Volatility in both flows suggests uneven demand or supply chain adjustments.

Indonesia Import Trend from Australia 2025 Q1 (Source: yTrade)**

MonthValueMoMYoY
Jan471.92M0.0%-40.95%
Feb867.78M83.88%27.18%
Mar703.54M-18.93%-4.56%
Total2.04B--

Indonesia Export Trend to Australia 2025 Q1 (Source: yTrade)**

MonthValueMoMYoY
Jan267.92M0.0%-14.99%
Feb394.35M47.19%8.41%
Mar302.52M-23.28%-35.88%
Total964.79M--

Get Historical Indonesia Australia Trade Records

Indonesia-Australia Top Trading Products in Q1 2025

Indonesia Export Profile: What Does Indonesia Sell to Australia

  • Top Commodity: Machinery (HS Code 84) dominates exports, accounting for 16.32% of total value.
  • Demand Driver: Australia imports machinery and electronics (HS Codes 84, 85) for industrial and consumer use, reflecting demand for capital goods and technology.
  • Concentration: No single category exceeds 50%, but machinery and electronics (HS Codes 84, 85) combined hold 27.28% share, indicating moderate concentration.

Indonesia Import Profile: What Does Indonesia Buy from Australia

  • Top Commodity: Mineral fuels (HS Code 27) lead imports, making up 23.56% of total value.
  • Dependency Nature: Heavy reliance on Australian energy (HS Code 27) and ores (HS Code 26) highlights raw material and energy security needs. Agricultural imports (HS Codes 01, 02, 08) suggest supplementary food demand.

Indonesia - Australia Trade Relationship Dynamics

  • The Exchange Model: Resource-for-Tech Complementarity. Indonesia supplies machinery and electronics to Australia, while importing energy and minerals, reflecting a classic resource-for-manufactured goods exchange.
  • Value Chain Position: Australia holds the higher value-add position in raw materials (energy, ores), while Indonesia’s exports (machinery, electronics) suggest mid-tier industrial capability.

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

HS CodeValuePercent
27481.33M23.56%
10285.16M13.96%
26238.27M11.66%
71209.48M10.25%
28101.38M4.96%
0189.41M4.38%
7464.66M3.16%
8459.85M2.93%
0255.82M2.73%
0853.80M2.63%

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

HS CodeValuePercent
84157.41M16.32%
85105.78M10.96%
2876.50M7.93%
7367.57M7.00%
6438.37M3.98%
6237.95M3.93%
1835.70M3.70%
4435.49M3.68%
4834.11M3.54%
2734.05M3.53%

Check Detailed Indonesia-Australia Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast for Indonesia-Australia Trade

The Indonesia-Australia trade relationship is likely to remain volatile in Q2 2025, with Indonesia’s trade deficit persisting due to sustained demand for Australian energy and minerals. While machinery exports may stabilize, the sharp YoY declines in Q1 suggest exporters must adapt to shifting Australian industrial demand. Long-term, the resource-for-tech exchange will hold, but short-term disruptions in supply chains or commodity prices could widen the deficit further. Traders should prepare for uneven growth, with potential rebounds in select high-value export sectors like electronics.

Strategic Moves for Traders & Policymakers

  • Diversify Export Markets: Indonesian machinery and electronics exporters should target alternative markets in Southeast Asia to reduce overreliance on Australia’s volatile demand.
  • Lock in Energy Contracts: Indonesian importers of Australian mineral fuels (HS Code 27) should secure fixed-price agreements to hedge against potential price surges driven by global energy instability.
  • Boost Export Competitiveness: The Indonesian government must incentivize higher-value manufacturing (e.g., advanced machinery under HS Code 84) to narrow the trade gap and reduce dependency on raw material imports.

Frequently Asked Questions

How did Indonesia - Australia trade perform in 2025 Q1?

Indonesia's exports to Australia totaled $964.79M, declining YoY, while imports from Australia reached $2.04B, showing mixed growth.

What are the top exports from Indonesia to Australia?

Machinery (HS Code 84) and electronics (HS Code 85) dominate Indonesia's exports, together accounting for 27.28% of total shipments.

What does Indonesia import from Australia?

Mineral fuels (HS Code 27) lead imports at 23.56%, followed by ores (HS Code 26) and agricultural products (HS Codes 01, 02, 08).

What is the trade balance between Indonesia and Australia?

Indonesia recorded a trade deficit of $1.08B with Australia in Q1 2025, with imports more than double exports.

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