As the world's fourth most populous country, Indonesia boasts a robust economy, significantly benefiting from its abundant natural resources and diverse export commodities. The nation's export market is essential to its economic growth, contributing to job creation and overall prosperity. In this article, we will delve deeper into the top 10 export commodities exported by the country, examine their importance in driving Indonesia’s economy forward, and explore the various nations that Indonesia exports its commodities to.
The rich landscape of Indonesia's export market
What makes Indonesia so competitive in the export market are the various commodities that it offers. A blend of abundant natural resources and manufactured goods, the country's exports encompass a diverse array of products across multiple categories, making it an enticing destination for global buyers. To provide an extensive overview of Indonesia's export market, we have compiled a list of the top 10 export commodities as reported by Indonesia Investments; they are:
- Coal: Indonesia is one of the main players in the global coal market, exporting 241.1 million tonnes of oil equivalent in recent years. This represents 6.3% of the world's coal supply, demonstrating the nation's dominance in this vital energy resource.
- Coalbed methane: With an estimated 453 trillion cubic feet of reserves, Indonesia is poised to contribute significantly to the global coalbed methane market. Accounting for 6.0% of the world's reserves, this untapped energy source has immense potential for future exports.
- Cocoa: As one of the world's biggest cocoa producers (third in the world), Indonesia plays a crucial role in the global chocolate industry. Producing 0.48 million tonnes annually, the country accounts for 12.2% of the worldwide cocoa supply.
- Coffee: Indonesia's coffee production reaches 9.4 million bags (60 kg/bag) annually, contributing 6.6% to the global coffee market. With a rich history and diverse coffee-growing regions (Java, Sumatra, and Sulawesi), Indonesian coffee is highly sought after internationally.
- Footwear: Indonesia has emerged as a leading footwear exporter thanks to its skilled workforce and cost-effective production capabilities. From athletic shoes to fashionable sandals, Indonesian footwear is in high demand across the globe, with annual exports amounting to an approximate of US$6.17 billion as compared to the import value of overseas sourced footwear that is estimated to be around US$732.23 million.
- LNG Gas: Indonesia's natural gas production is currently at 75.0 billion m³, accounting for 2.1% of the global output. The country's vast reserves and strategic location make it an essential player in the international natural gas market.
- Palm Oil: As the world's largest palm oil producer, Indonesia exports approximately 46 million tonnes of crude palm oil annually. This commodity is versatile in use and is in high demand across various industries, from food to biofuels.
- Paper Products: Indonesia is a significant producer and exporter of paper products, including pulp, paper, and paperboard. With an export value of around US$4.22 billion worth of paper being shipped to overseas destinations such as China, Japan, Vietnam, Malaysia, and the Philippines. Pulp exports are also significant, with a value of US$3.28 billion being exported to several countries such as China, Korea, India, Bangladesh, and Vietnam.
- Rice: Indonesia's rice production amounts to 70.6 million tonnes, contributing 9.5% to the global rice supply. As a staple food in many countries, Indonesian rice plays a crucial role in feeding populations worldwide.
- Rubber (Natural): Indonesia is one of the main natural rubber producers in the world, with an output of 3.2 million tonnes, accounting for 26.7% of global production. This essential commodity is used in various industries, such as automotive, construction, and manufacturing.
