Indonesia - South Korea Trade 2023 Q3: Stagnant Yet Strategic

Key Market Takeaways: Indonesia - South Korea Trade

The bilateral trade relationship between Indonesia and South Korea remains stagnant with balanced volumes but a persistent deficit in 2023 Q3.

• Economic Pulse: Indonesia recorded a $250M trade deficit with South Korea ($2.74B imports vs. $2.49B exports), with flat YoY growth in both directions.
• Exchange Structure: Indonesia - South Korea trade statistics reveal a resource-for-tech dynamic—Indonesia supplies fuels and ores (51.28% of exports) while importing high-value machinery and electronics (38.01% of imports).
• Strategic Interdependence: The partnership reflects complementary but asymmetric value chains, with South Korea dominating high-tech exports and Indonesia providing upstream inputs.

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

Indonesia-South Korea Trade Trend in Q3 2023

Indonesia Export Performance: Shipments to South Korea

• Total Volume: $2.49B in Q3 2023.
• Growth Trend & Context: YoY growth flat (0.0% across all months). No significant policy shifts or external drivers noted.
• Key Volatility: August saw a sharp 23.74% MoM surge, followed by a 13.32% drop in September.

Indonesia Import Performance: Sourcing from South Korea

• Total Volume: $2.74B in Q3 2023.
• Growth Trend & Context: YoY growth stagnant (0.0%). No supply shocks or trade policy changes reported.
• Key Volatility: July imports spiked 16.58% MoM before declining 10.7% in August and 1.36% in September.

Indonesia - South Korea Trade Balance & Market Dynamics

• Net Position: Trade deficit of $250M (Imports $2.74B > Exports $2.49B).
• Relationship Status: Indonesia remains a net importer from South Korea, though trade volumes are relatively balanced with modest deficit.

Indonesia Import Trend from South Korea 2023 Q3 (Source: yTrade)**

Indonesia Export Trend to South Korea 2023 Q3 (Source: yTrade)**

Get Historical Indonesia South Korea Trade Records

Indonesia-South Korea Top Trading Products in Q3 2023

Indonesia Export Profile: What Does Indonesia Sell to South Korea

• Top Commodity: Rank #1 export is HS 27 (Mineral fuels, oils) at 32.39% of total exports.
• Demand Driver: South Korea uses these for industrial processing and energy needs.
• Concentration: Trade is highly concentrated, with HS 27 and HS 26 (Ores, slag, ash) together accounting for 51.28% of exports.

Indonesia Import Profile: What Does Indonesia Buy from South Korea

• Top Commodity: Rank #1 import is HS 84 (Nuclear reactors, machinery) at 18.09% of total imports.
• Dependency Nature: Critical technology dependency, with high-tech and machinery (HS 84, 85, 90) dominating 38.01% of imports.

Indonesia - South Korea Trade Relationship Dynamics

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

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 remain stable in the near term, with modest growth potential constrained by stagnant demand and high commodity concentration. The persistent trade deficit of $250M signals an imbalance, but the complementary resource-for-tech exchange model provides a foundation for steady volumes. However, volatility in mineral fuel exports (HS 27) and machinery imports (HS 84) may continue, requiring proactive risk management. Without significant policy shifts or demand surges, the Indonesia-South Korea trade relationship will likely consolidate rather than expand sharply in 2024.

Strategic Moves

• Diversify Export Basket: Indonesian exporters must reduce reliance on mineral fuels (HS 27) by developing secondary high-value sectors like processed agricultural goods or textiles to mitigate price volatility.
• Lock in Tech Supply Chains: Importers should secure long-term contracts for critical machinery (HS 84) to hedge against potential disruptions and stabilize input costs for domestic manufacturing.
• Leverage Trade Diplomacy: The Indonesian government should push for tariff reductions on non-fuel exports to South Korea under existing FTAs, narrowing the deficit while strengthening industrial partnerships.

Frequently Asked Questions

How did Indonesia - South Korea trade perform in 2023 Q3?

Indonesia's exports to South Korea totaled $2.49B, while imports were $2.74B, with both showing flat YoY growth (0.0%).

What are the top exports from Indonesia to South Korea?

The top exports are HS 27 (Mineral fuels, oils) at 32.39% and HS 26 (Ores, slag, ash), together accounting for 51.28% of total exports.

What does Indonesia import from South Korea?

The top import is HS 84 (Nuclear reactors, machinery) at 18.09%, with high-tech and machinery dominating 38.01% of imports.

What is the trade balance between Indonesia and South Korea?

Indonesia recorded a trade deficit of $250M in Q3 2023, with imports ($2.74B) exceeding exports ($2.49B).