India-Indonesia Bilateral Trade hits USD 29.4 Billion in 2024: Report
NEW DELHI : The bilateral trade between India and Indonesia reached USD 29.4 billion in FY2023-24, with Indonesia ranking as India’s eighth largest trading partner. India is Indonesia’s second-largest buyer of coal and crude palm oil, highlighting the strategic importance of this partnership, according to a report by Rubix Data Sciences.
India’s exports to Indonesia totalled USD 5.99 billion in FY2024, with mineral fuels and vehicles among the top traded goods. Notably, Indonesia’s investments in India, cumulatively valued at USD 653.83 million, span sectors such as automotive, pharmaceuticals, and banking.
According to the report, “Collaborative initiatives, including energy and technology agreements, further deepen ties, paving the way for mutual growth. The report identified Indonesia as a land of unparalleled opportunity.
From its burgeoning EV sector to policy reforms fostering foreign investment, businesses can capitalise on Indonesia’s strategic initiatives to expand their global footprint. “Indonesia’s economic evolution is a story of resilience, agility, and strategic policy”, said Mohan Ramaswamy, Co-founder and CEO of Rubix Data Sciences.
“This report provides the roadmap businesses need to navigate and succeed in one of Southeast Asia’s most promising markets and ASEAN’s largest economy,” he added. Indonesia’s GDP growth is projected to sustain at 5.1 per cent in 2025, reflecting robust economic momentum driven by targeted investments, trade expansion, and value-added policies.
Inflation, a key indicator of economic stability, has been effectively contained, reaching a record low of 1.71 per cent in October 2024. The country is also cementing its status as a global nickel leader, with projections to supply 62 per cent of the world’s nickel by 2028.
This strategic position aligns with its ambitions in the electric vehicle (EV) and battery manufacturing sectors, as nickel is a critical component for these industries. Strategic export bans on raw nickel and bauxite have further attracted over USD 30 billion in investments, primarily from China, fueling domestic value addition.
Indonesia’s exceptional trade management is evident in its 53rd consecutive monthly trade surplus recorded in September 2024. Non-oil and gas exports, including mineral fuels, vegetable oils, and iron and steel, continue to dominate despite global commodity price fluctuations, highlighting the need for diversification.
Sustainability remains at the core of Indonesia’s economic strategy, with a 75 per cent reduction in deforestation since 2019, bold green energy projects, and the ambitious Vision 2045 plan. By balancing industrialisation with sustainability, Indonesia is positioning itself as a global leader in climate-conscious economic growth.