Indonesia - South Korea Trade 2023 Q4: Balanced Tech-Resource Exchange

Key Market Takeaways: Indonesia - South Korea Trade

The bilateral trade relationship between Indonesia and South Korea remains stable with balanced interdependence in Q4 2023.

• Economic Pulse: Indonesia holds a $400M trade surplus ($2.76B exports vs. $2.36B imports), though volumes show flat YoY growth, signaling steady but stagnant trade.
• Exchange Structure: Indonesia - South Korea trade statistics reveal a resource-for-tech dynamic—Indonesia supplies fuels and ores (54% of exports) while importing high-value machinery and electronics (32% of imports).
• Strategic Interdependence: Highly complementary economies, with South Korea leveraging Indonesia’s raw materials and Indonesia dependent on Korean tech for industrial growth.

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

Indonesia-South Korea Trade Trend in Q4 2023

Indonesia Export Performance: Shipments to South Korea

• Total Volume: $2.76B in Q4 2023.
• Growth Trend & Context:
  • YoY growth flat (0.0% across all months), indicating stagnant demand or stable trade terms.
  • Key Volatility: November saw a sharp 40.05% MoM surge, followed by a milder 6.26% rise in December. No news context to explain the spike.

Indonesia Import Performance: Sourcing from South Korea

• Total Volume: $2.36B in Q4 2023.
• Growth Trend & Context:
  • YoY growth flat (0.0%), reflecting steady procurement.
  • Key Volatility: October recorded the lowest imports ($800.08M, -8.03% MoM), with marginal declines continuing through December.

Indonesia - South Korea Trade Balance & Market Dynamics

• Net Position: Trade surplus of $400M (Exports $2.76B > Imports $2.36B).
• Relationship Status: Indonesia maintains a net exporter role, though trade volumes suggest balanced interdependence.

Indonesia Import Trend from South Korea 2023 Q4 (Source: yTrade)**

Indonesia Export Trend to South Korea 2023 Q4 (Source: yTrade)**

Get Historical Indonesia South Korea Trade Records

Indonesia-South Korea Top Trading Products in Q4 2023

Indonesia Export Profile: What Does Indonesia Sell to South Korea

• Top Commodity: HS Code 27 (Mineral fuels, oils) dominates with 38.30% share.
• Demand Driver: South Korea relies on Indonesia for energy inputs, likely refining crude oil or processing mineral fuels for industrial use.
• Concentration: The trade is highly concentrated, with HS Code 27 and 26 (Ores, slag, ash) together accounting for 54.41% of exports.

Indonesia Import Profile: What Does Indonesia Buy from South Korea

• Top Commodity: HS Code 84 (Nuclear reactors, machinery) leads at 16.38% share, closely followed by HS Code 85 (Electrical machinery) at 16.36%.
• Dependency Nature: Critical technology dependency, as Indonesia imports high-value machinery and electronics for manufacturing and infrastructure.

Indonesia - South Korea Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Indonesia supplies raw materials (fuels, ores) while South Korea exports advanced machinery and electronics.
• Value Chain Position: South Korea holds the higher value-add position, exporting complex manufactured goods (HS 84, 85, 90) against Indonesia’s commodity-heavy exports.

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 for Indonesia - South Korea Trade

The Indonesia - South Korea trade relationship is expected to remain stable in the near term, with modest growth potential. Given South Korea’s steady demand for Indonesian mineral fuels (HS 27) and ores (HS 26), exports are likely to sustain their current volume, though price volatility in global energy markets could introduce fluctuations. On the import side, Indonesia’s reliance on South Korean machinery and electronics (HS 84, 85) will persist, driven by ongoing industrialization needs. However, without significant shifts in trade policy or demand shocks, the trade surplus of $400M may narrow slightly as Indonesia’s infrastructure investments increase imports of high-tech equipment.

Strategic Moves for Traders & Policymakers

• Lock in Long-Term Supply Contracts: Indonesian exporters of mineral fuels and ores should secure multi-year agreements with South Korean buyers to mitigate price volatility and ensure stable revenue streams.
• Diversify Export Composition: Indonesia must reduce over-reliance on raw material exports by incentivizing value-added processing (e.g., refined fuels, processed metals) to capture higher margins and reduce vulnerability to commodity price swings.
• Optimize Tech Procurement: Indonesian importers of South Korean machinery should negotiate bundled deals or joint ventures to lower costs and transfer technical expertise, strengthening domestic manufacturing capabilities.

Frequently Asked Questions

How did Indonesia - South Korea trade perform in 2023 Q4?

Indonesia's exports to South Korea totaled $2.76B, with flat YoY growth (0.0%). Imports from South Korea were $2.36B, also showing no YoY change.

What are the top exports from Indonesia to South Korea?

The top exports are mineral fuels and oils (HS Code 27) and ores, slag, and ash (HS Code 26), together accounting for 54.41% of exports.

What does Indonesia import from South Korea?

Indonesia primarily imports nuclear reactors and machinery (HS Code 84) and electrical machinery (HS Code 85), making up 32.74% of total imports.

What is the trade balance between Indonesia and South Korea?

Indonesia recorded a trade surplus of $400M in Q4 2023, maintaining its net exporter role with balanced interdependence.