Indonesia remains India’s second-largest trading partner in ASEAN, but the trade relationship is changing rapidly. Exports have become more diversifie…
1/61. Indonesia’s standing: Indonesia is India’s second-largest ASEAN trading partner, with $24.8 billion in total goods trade in FY2026, trailing only Singapore’s $36.1 billion, and ahead of Thailand, Malaysia and Vietnam.
2/62. Exports rebuilt from the ground up: India’s exports to Indonesia moved from $10.0 billion to $4.5 billion since FY2023.
3/63. Steadily reducing commodity reliance: Imports eased from $28.8 billion to $20.3 billion.
4/64. Exports diversification: Refined petroleum fell from 39% to 5% of exports, while frozen bovine meat, auto components and unmanufactured tobacco all gained ground — a shift toward agri and industrial goods with room to grow.
5/65. New categories breaking through, even in commodities: Coal’s import share dropped 20 points, while semiconductors, stainless steel and industrial fatty acids all gained share.
6/66. A healthier balance sheet: Total bilateral trade came down from $38.8 billion to $24.8 billion, but India’s trade deficit with Indonesia narrowed from $18.8 billion to $15.8 billion, making this the most encouraging number in the report.
