Indonesia - South Korea Trade 2023: Volatile Growth & Deficit

Key Market Takeaways: Indonesia - South Korea Trade

The bilateral trade relationship between Indonesia and South Korea showed volatile growth with a slight deficit in 2023.

• Economic Pulse: Indonesia recorded a $230M trade deficit ($10.53B imports vs. $10.30B exports), with mixed YoY performance—sharp monthly swings in both directions.
• Exchange Structure: Indonesia - South Korea trade statistics reveal a resource-for-tech model: Indonesia supplies mineral fuels (40% of exports) while importing machinery and electrical equipment (top imports).
• Strategic Interdependence: The partnership is highly complementary but uneven—South Korea holds the high-value tech position, while Indonesia provides critical raw materials.

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

Indonesia-South Korea Trade Trend in Whole Year 2023

Indonesia Export Performance: Shipments to South Korea

• Total Volume: $10.30B in 2023.
• Growth Trend & Context:
  • YoY growth was mixed, with January showing a strong 29.18% increase, but March saw a sharp -31.81% decline.
  • No specific trade news or policy changes were reported to explain these fluctuations.
• Key Volatility: November recorded the highest MoM surge (+40.05%), while February and April saw significant drops (-15.75% and -15.01%, respectively).

Indonesia Import Performance: Sourcing from South Korea

• Total Volume: $10.53B in 2023.
• Growth Trend & Context:
  • YoY trends were negative early in the year (e.g., January: -6.79%), but stabilized to 0% YoY from April onward.
• Key Volatility: May had the largest MoM jump (+59.43%), while April saw the steepest decline (-36.68%).

Indonesia - South Korea Trade Balance & Market Dynamics

• Net Position: Indonesia recorded a trade deficit of $230M ($10.53B imports vs. $10.30B exports).
• Relationship Status: Slight import dependence, with trade volumes closely balanced overall.

Indonesia Import Trend from South Korea 2023 Whole Year (Source: yTrade)**

Indonesia Export Trend to South Korea 2023 Whole Year (Source: yTrade)**

Get Historical Indonesia South Korea Trade Records

Indonesia-South Korea Top Trading Products in Whole Year 2023

Indonesia Export Profile: What Does Indonesia Sell to South Korea

• Top Commodity: Rank #1 export is HS 27 (Mineral fuels, oils, etc.) at 39.78% of total exports.
• Demand Driver: South Korea uses these for industrial processing and energy needs.
• Concentration: Trade is heavily concentrated, with HS 27 alone accounting for nearly 40% of exports.

Indonesia Import Profile: What Does Indonesia Buy from South Korea

• Top Commodity: Rank #1 import is HS 84 (Nuclear reactors, boilers, machinery) at 16.68% of total imports.
• Dependency Nature: Critical technology dependency, as HS 84 and HS 85 (electrical machinery) dominate imports.

Indonesia - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Indonesia exports raw materials (mineral fuels, ores) and imports high-tech machinery and equipment.
• Value Chain Position: South Korea holds the higher value-add position, supplying advanced industrial goods, while Indonesia provides commodities.

Import Analysis by Product: South Korea to Indonesia (Source: yTrade)

Export Analysis by Product: Indonesia to South Korea (Source: yTrade)

Check Detailed Indonesia-South Korea Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

Indonesia’s trade with South Korea is expected to stabilize in 2024, with moderate growth driven by sustained demand for mineral fuels (HS 27) and high-tech machinery (HS 84). However, volatility in monthly trade flows suggests exporters and importers should prepare for short-term fluctuations, particularly in commodity prices and industrial demand. The slight trade deficit may persist unless Indonesia accelerates diversification into higher-value exports or negotiates more favorable terms for critical imports. Long-term, the resource-for-tech exchange model will likely deepen, but Indonesia must address supply chain inefficiencies to maximize gains from this partnership.

Strategic Moves

• Secure Long-Term Contracts for Commodities: Indonesian exporters of mineral fuels should lock in multi-year agreements with South Korean buyers to mitigate price volatility and ensure stable revenue streams.
• Diversify Export Composition: Reduce reliance on raw materials by promoting processed goods (e.g., refined petroleum, nickel-based products) to capture higher margins and reduce trade imbalance risks.
• Optimize Tech Import Channels: Indonesian manufacturers dependent on South Korean machinery (HS 84) should streamline procurement through joint ventures or local assembly partnerships to lower costs and enhance supply chain resilience.

Traders must act swiftly to capitalize on emerging opportunities while hedging against market uncertainties.

Frequently Asked Questions

How did Indonesia - South Korea trade perform in 2023 Whole Year?

Indonesia exported $10.30B and imported $10.53B from South Korea in 2023, with mixed YoY growth trends and significant monthly volatility.

What are the top exports from Indonesia to South Korea?

HS 27 (Mineral fuels, oils, etc.) was the top export, accounting for 39.78% of Indonesia's total shipments to South Korea.

What does Indonesia import from South Korea?

HS 84 (Nuclear reactors, boilers, machinery) was the top import, representing 16.68% of Indonesia's total purchases from South Korea.

What is the trade balance between Indonesia and South Korea?

Indonesia recorded a trade deficit of $230M in 2023, with imports slightly exceeding exports.