Indonesia continues to demonstrate remarkable trade resilience, with export values reaching USD 23.44 billion in June 2025, marking an impressive 11.29% year-on-year (YoY) growth. This robust performance is primarily driven by the thriving non-oil and gas sector, which surged to USD 22,33 billion, supported by strong contributions from palm oil, electrical machinery, iron and steel, and precious metals

What’s Driving Indonesia’s Export Strength?

In the first half of 2025, total exports surged to USD 135.41 billion, reflecting strong performance across both manufacturing sector and agriculture, forestry, and fisheries. Key commodities such as iron and steel (USD 13.79 billion), palm oil and its derivatives (USD 11.43 billion), and coal (USD 11.97 billion) collectively accounted for nearly 29% of Indonesia’s non-oil and gas exports, reinforcing the nation’s standing as a global trade powerhouse

Source: Statistics Indonesia

The industrial processing sector dominated Indonesia’s exports, contributing USD 107.60 billion (79.46%) of total exports. Meanwhile, agricultural products and mining exports accounted for USD 3.39 billion (2.50%) and USD 17.40 billion (12.85%), respectively–showcasing Indonesia’s strength in both manufacturing and resource-based industries

Trade partnerships continue to play a decisive role in shaping Indonesia’s performance. China remained the top export destination with USD 29.31 billion in the first half of 2025, followed by the United States (USD 14.79 billion) and India (USD 8.97 billion). These dynamics underscore Indonesia’s role as a reliable supplier in global value chains and as a competitive trade partner, creating opportunities for collaboration, investment, and sustainable growth

From Trade Strength to Investment Confidence

In 2024, Indonesia achieved a total investment realization of IDR 1,714.2 trillion, from domestic and international investors–surpassing the target by nearly 3,9% and marking a robust 20.8% YoY growth. Foreign Direct Investment (FDI) dominated with IDR 900.2 trillion, also generating employment opportunities for 2.45 million workers, signaling strong investor confidence in Indonesia’s economic fundamentals

This inward investment trend underscores Indonesia’s growing role as both a trade and investment hub in the region. FDI in 2024 was largely concentrated in key industrial and regional hubs. West Java led with USD 10 billion, followed by Central Sulawesi (USD 9 billion), Jakarta (USD 7.6 billion), North Maluku (USD 4.4 billion), and Banten (USD 3.9 billion)

Source: Statistics Indonesia

The top contributing subsectors included basic metal and metal goods industries (USD 13.6 billion), mining (USD 5.2 billion), paper and printing (USD 4.8 billion), transportation, warehousing, and telecommunications (USD 4.7 billion), and chemical industries (USD 4.1 billion). These figures highlight Indonesia’s strong industrial base and regional diversification in attracting high-value foreign investment

A brief overview of Indonesia’s investment realization in 2025 shows continued positive momentum and solid investor confidence. In the first quarter of 2025, Indonesia recorded an investment realization of IDR 465.2 trillion, equivalent to nearly one-fourth of the annual target of IDR 1,905.6 trillion, excluding upstream oil and gas as well as financial services. West Java again emerged as the top destination for FDI, attracting USD 2.2 billion during the period. This strong first-quarter performance establishes a solid foundation for sustained growth and further investment expansion throughout 2025

For businesses, this balance of growing exports and rising investment presents opportunities: whether tapping into Indonesia’s solid economic performance and technology opportunities or leveraging its export strength to forge stronger global partnerships. The key question now is how businesses can transform this momentum into lasting growth and global partnerships

Written by Salsabila Shafa Widhi Sunoto – Kadin Business Service Desk