Indonesia - Germany Trade 2023 Q2: Stagnant Growth
Key Market Takeaways: Indonesia - Germany Trade
The bilateral trade relationship between Indonesia and Germany remained stagnant in Q2 2023, with flat YoY growth and a persistent deficit.
- Economic Pulse: Indonesia ran a $559.93M trade deficit with Germany, importing $1.26B (flat YoY) while exporting $700.07M (also flat YoY). June saw a sharp -40.8% MoM export drop.
- Exchange Structure: Indonesia - Germany trade statistics reveal a resource-for-tech dynamic—Indonesia supplies ores (30.29% of exports) while Germany dominates with machinery (29.38% of imports).
- Strategic Interdependence: The partnership is complementary but imbalanced, with Germany holding the high-value position in advanced manufacturing.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Indonesia-Germany Trade Trend in Q2 2023
Indonesia Export Performance: Shipments to Germany
- Total Volume: $700.07M in Q2 2023.
- Growth Trend & Context:
- YoY growth flat (0.0%) across all months, indicating stagnant demand or unchanged trade terms.
- Key Volatility: June saw a sharp -40.8% MoM drop, the steepest decline in the quarter.
Indonesia Import Performance: Sourcing from Germany
- Total Volume: $1.26B in Q2 2023.
- Growth Trend & Context:
- YoY growth flat (0.0%), suggesting stable import reliance.
- Key Volatility: April imports fell -21.69% MoM, but May and June rebounded with +14.87% and +10.33% growth, respectively.
Indonesia - Germany Trade Balance & Market Dynamics
- Net Position: Trade deficit of $559.93M (Imports exceeded exports).
- Relationship Status: Indonesia remains a net importer from Germany, reflecting higher dependency on German goods.
Indonesia Import Trend from Germany 2023 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 367.43M | -21.69% | 0.0% |
| May | 422.07M | 14.87% | 0.0% |
| Jun | 465.69M | 10.33% | 0.0% |
| Total | 1.26B | - | - |
Indonesia Export Trend to Germany 2023 Q2 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Apr | 278.11M | 23.71% | 0.0% |
| May | 265.05M | -4.69% | 0.0% |
| Jun | 156.92M | -40.8% | 0.0% |
| Total | 700.07M | - | - |
Get Historical Indonesia Germany Trade Records
Indonesia-Germany Top Trading Products in Q2 2023
Indonesia Export Profile: What Does Indonesia Sell to Germany
- Top Commodity: Rank #1 export is HS 26 (Ores, slag, and ash) at 30.29% of total exports to Germany.
- Demand Driver: Germany uses these raw materials for industrial processing, likely in metal production or manufacturing.
- Concentration: Trade is moderately concentrated, with the top commodity holding a 30% share but no single category dominating above 50%.
Indonesia Import Profile: What Does Indonesia Buy from Germany
- Top Commodity: Rank #1 import is HS 84 (Nuclear reactors, boilers, machinery) at 29.38% of total imports from Germany.
- Dependency Nature: Critical technology dependency, as Indonesia relies on German machinery for industrial and manufacturing sectors.
Indonesia - Germany Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity. Indonesia supplies raw materials (ores) to Germany, while Germany exports high-value machinery and equipment.
- Value Chain Position: Germany holds the higher value-add position, with exports dominated by advanced machinery (HS 84, 85, 90) compared to Indonesia’s raw material-focused exports.
Import Analysis by Product: Germany to Indonesia (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 84 | 368.83M | 29.38% |
| 73 | 266.88M | 21.26% |
| 87 | 129.75M | 10.34% |
| 85 | 113.32M | 9.03% |
| 90 | 63.51M | 5.06% |
| 38 | 43.78M | 3.49% |
| 30 | 37.55M | 2.99% |
| 39 | 33.52M | 2.67% |
| 29 | 26.57M | 2.12% |
| 34 | 13.13M | 1.05% |
Export Analysis by Product: Indonesia to Germany (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 26 | 212.08M | 30.29% |
| 84 | 70.88M | 10.12% |
| 64 | 57.25M | 8.18% |
| 85 | 55.21M | 7.89% |
| 62 | 50.08M | 7.15% |
| 61 | 27.08M | 3.87% |
| 40 | 25.29M | 3.61% |
| 92 | 18.83M | 2.69% |
| 44 | 15.94M | 2.28% |
| 09 | 12.27M | 1.75% |
Check Detailed Indonesia-Germany Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
Indonesia’s trade with Germany is expected to remain stable but stagnant in the near term, with no significant YoY growth projected for Q3 2023. The persistent trade deficit of $559.93M highlights Indonesia’s reliance on German machinery (HS 84) and Germany’s steady demand for Indonesian raw materials (HS 26). However, the sharp MoM export drop in June signals potential volatility, possibly due to fluctuating commodity prices or supply chain disruptions. Without structural shifts—such as Indonesia moving up the value chain or Germany diversifying its sourcing—the resource-for-tech exchange model will likely persist, maintaining the current equilibrium but limiting upside potential.
Strategic Moves
- Secure Long-term Contracts for Ores (HS 26): Indonesian exporters should lock in stable pricing agreements with German industrial buyers to mitigate future volatility and ensure consistent revenue streams.
- Diversify Import Sources for Machinery (HS 84): To reduce dependency on German technology, Indonesian manufacturers must explore alternative suppliers in markets like Japan or South Korea while investing in domestic industrial capabilities.
- Expand Export Basket Beyond Raw Materials: Indonesia should prioritize value-added processing of ores (e.g., nickel refining) to capture higher margins and shift the trade balance in its favor. Government incentives for downstream industries could accelerate this transition.
Frequently Asked Questions
How did Indonesia - Germany trade perform in 2023 Q2?
Indonesia's exports to Germany totaled $700.07M, while imports reached $1.26B, with both showing flat YoY growth (0.0%).
What are the top exports from Indonesia to Germany?
The top export is HS 26 (Ores, slag, and ash), accounting for 30.29% of total exports to Germany.
What does Indonesia import from Germany?
The top import is HS 84 (Nuclear reactors, boilers, machinery), making up 29.38% of total imports from Germany.
What is the trade balance between Indonesia and Germany?
Indonesia recorded a trade deficit of $559.93M with Germany in Q2 2023, reflecting higher imports of German goods.
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