Indonesia - Brazil Trade 2024 Q2: Deficit Widens
Key Market Takeaways: Indonesia - Brazil Trade
The bilateral trade relationship between Indonesia and Brazil shows growth with high volatility in Q2 2024, but Indonesia remains in a significant deficit position.
- Economic Pulse: Indonesia’s trade deficit with Brazil hit $648.64M, driven by $910.73M in imports (mostly sugar) versus $262.09M in exports (fats/oils, machinery). YoY growth was positive but uneven.
- Exchange Structure: Indonesia - Brazil trade statistics reveal a resource-for-food model—Indonesia supplies industrial inputs (animal/vegetable fats, machinery) while relying on Brazilian agricultural staples (sugar, animal feed).
- Strategic Interdependence: The partnership is asymmetrically complementary, with Brazil holding stronger value-add in agriculture and Indonesia exporting mid-processed goods.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Indonesia-Brazil Trade Trend in Q2 2024
Indonesia Export Performance: Shipments to Brazil
- Total Volume: $262.09M in Q2 2024.
- Growth Trend & Context:
- YoY growth remained positive (Apr: +35.09%, May: +20.12%), though momentum slowed in May.
- Key Volatility: May saw a sharp 37.89% MoM rebound after a 17.03% drop in April.
Indonesia Import Performance: Sourcing from Brazil
- Total Volume: $910.73M in Q2 2024.
- Growth Trend & Context:
- YoY growth was strong in April (+70.16%) but moderated to +27.1% in May.
- Key Volatility: May imports plunged 20.11% MoM, erasing April’s 2.95% gain.
Indonesia - Brazil Trade Balance & Market Dynamics
- Net Position: Trade deficit of $648.64M (Imports exceeded exports by this margin).
- Relationship Status: Indonesia remains heavily dependent on Brazilian imports, with export growth failing to offset the imbalance.
Indonesia Import Trend from Brazil 2024 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 506.26M | 2.95% | 70.16% |
| May | 404.46M | -20.11% | 27.1% |
| Total | 910.73M | - | - |
Indonesia Export Trend to Brazil 2024 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 110.17M | -17.03% | 35.09% |
| May | 151.92M | 37.89% | 20.12% |
| Total | 262.09M | - | - |
Get Historical Indonesia Brazil Trade Records
Indonesia-Brazil Top Trading Products in Q2 2024
Indonesia Export Profile: What Does Indonesia Sell to Brazil
- Top Commodity: HS Code 15 (Animal/vegetable fats and oils) dominates at 25.45% of exports.
- Demand Driver: Brazil likely uses these for industrial processing, given their role as raw materials.
- Concentration: No single category exceeds 50%, but the top 3 exports (HS 15, 85, 87) account for 58.92%, indicating moderate concentration.
Indonesia Import Profile: What Does Indonesia Buy from Brazil
- Top Commodity: HS Code 17 (Sugars and sugar confectionery) leads with 45.37% of imports.
- Dependency Nature: Reflects food security dependency, as Brazil is a major global sugar producer.
Indonesia - Brazil Trade Relationship Dynamics
- The Exchange Model: Resource-for-Food Complementarity. Indonesia exports industrial inputs (fats, machinery) and imports agricultural staples (sugar, animal feed).
- Value Chain Position: Brazil commands higher value-add in agriculture (HS 17, 23), while Indonesia’s exports (HS 15, 85) suggest mid-tier processing capabilities.
Import Analysis by Product: Brazil to Indonesia (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 17 | 413.20M | 45.37% |
| 23 | 267.77M | 29.40% |
| 52 | 61.56M | 6.76% |
| 26 | 41.41M | 4.55% |
| 24 | 21.12M | 2.32% |
| 47 | 19.20M | 2.11% |
| 10 | 18.58M | 2.04% |
| 30 | 9.92M | 1.09% |
| 85 | 7.30M | 0.80% |
| 73 | 7.23M | 0.79% |
Export Analysis by Product: Indonesia to Brazil (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 15 | 66.71M | 25.45% |
| 85 | 61.34M | 23.41% |
| 87 | 26.37M | 10.06% |
| 84 | 16.20M | 6.18% |
| 27 | 14.51M | 5.54% |
| 40 | 13.58M | 5.18% |
| 64 | 12.00M | 4.58% |
| 55 | 10.08M | 3.85% |
| 38 | 8.56M | 3.26% |
| 39 | 5.37M | 2.05% |
Check Detailed Indonesia-Brazil Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Indonesia’s trade with Brazil is expected to remain volatile in the near term, with exports likely to stabilize around current levels while imports could face downward pressure due to Brazil’s fluctuating sugar production and global commodity price shifts. The persistent trade deficit underscores Indonesia’s reliance on Brazilian agricultural staples, but export growth in industrial inputs (e.g., fats, machinery) may gradually narrow the gap if demand holds. Traders should prepare for uneven monthly swings, particularly in sugar imports, while monitoring Brazil’s harvest cycles and Indonesia’s processing sector expansion for long-term signals.
Strategic Moves
- Diversify Import Sources: Reduce dependency on Brazilian sugar by exploring alternative suppliers (e.g., India, Thailand) to mitigate supply chain disruptions and price volatility.
- Boost High-Value Exports: Capitalize on Brazil’s demand for industrial inputs by expanding shipments of processed fats (HS 15) and machinery (HS 85), targeting sectors with stable growth.
- Lock in Forward Contracts: Secure fixed-price agreements for critical imports (e.g., HS 17 sugars) to hedge against sudden price spikes, especially ahead of Brazil’s peak harvest seasons.
Frequently Asked Questions
How did Indonesia - Brazil trade perform in 2024 Q2?
Indonesia's exports to Brazil totaled $262.09M, showing positive YoY growth, while imports from Brazil reached $910.73M, resulting in a trade deficit of $648.64M.
What are the top exports from Indonesia to Brazil?
The top exports are animal/vegetable fats and oils (HS 15), machinery (HS 85), and vehicles (HS 87), accounting for 58.92% of total exports.
What does Indonesia import from Brazil?
Indonesia primarily imports sugars and sugar confectionery (HS 17), which makes up 45.37% of total imports, reflecting a food security dependency.
What is the trade balance between Indonesia and Brazil?
Indonesia recorded a trade deficit of $648.64M with Brazil in Q2 2024, as imports significantly outweighed exports.
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