The United States and Indonesia meet regularly under the 1996 bilateral Trade and Investment Framework Agreement (TIFA). Under the TIFA, Indonesia and the United States work to address bilateral issues and coordinate on regional and multilateral issues. The latest information regarding significant trade barriers can be found in the 2021 National Trade Estimate Report, see here.
Economic and Trade Statistics
In 2020, Indonesia GDP was an estimated $1.1 trillion (current market exchange rates); real GDP was down by an estimated 1.5 percent; and the population was 270 million. (Source: IMF)
U.S. goods and services trade with Indonesia totaled an estimated $30.0 billion in 2020. Exports were $9.3 billion; imports were $20.7 billion. The U.S. goods and services trade deficit with Indonesia was $11.5 billion in 2020.
Indonesia is currently our 24th largest goods trading partner with $27.6 billion in total (two way) goods trade during 2020. Goods exports totaled $7.4 billion; goods imports totaled $20.2 billion. The U.S. goods trade deficit with Indonesia was $12.8 billion in 2020.
Trade in services with Indonesia (exports and imports) totaled an estimated $2.4 billion in 2020. Services exports were $1.9 billion; services imports were $518 million. The U.S. services trade surplus with Indonesia was $1.4 billion in 2020.
According to the Department of Commerce, U.S. exports of goods and services to Indonesia supported an estimated 53 thousand jobs in 2019 (latest data available) (39 thousand supported by goods exports and 14 thousand supported by services exports).
Exports
• Indonesia was the United States' 33rd largest goods export market in 2020.
• U.S. goods exports to Indonesia in 2020 were $7.4 billion, down 4.3 percent ($336 million) from 2019 but up 6 percent from 2010.
• The top export categories (2-digit HS) in 2020 were: mineral fuels ($1.2 billion), oilseeds and oleaginous fruits (soybeans) ($940 million), machinery ($632 million), food waste, animal feed ($477 million), and wood pulp ($334 million).
• U.S. total exports of agricultural products to Indonesia totaled $2.8 billion in 2020, our 11th largest agricultural export market. Leading domestic export categories include: soybeans ($887 million), dairy products ($348 million), wheat ($275 million), cotton ($257 million), and other feeds, meals and fodders ($228 million).
• U.S. exports of services to Indonesia were an estimated $1.9 billion in 2020, 33.9 percent ($964 million) less than 2019, but 10 percent greater than 2010 levels. Leading services exports from the U.S. to Indonesia were in the travel, technical and other services, and financial services sectors.
Imports
• Indonesia was the United States' 21st largest supplier of goods imports in 2020.
• U.S. goods imports from Indonesia totaled $20.2 billion in 2020, up 0.5 percent ($106 million) from 2019, and up 23 percent from 2010.
• The top import categories (2-digit HS) in 2020 were: electrical machinery ($2.2 billion), knit apparel ($1.9 billion), woven apparel ($1.7 billion), rubber ($1.5 billion), and furniture and bedding ($1.4 billion).
• U.S. total imports of agricultural products from Indonesia totaled $2.4 billion in 2020, our 17th largest supplier of agricultural imports. Leading categories include: vegetable oils ($972 million), industrial alcohols and fatty acids ($324 million), cocoa paste and cocoa butter ($257 million), unroasted coffee ($234 million), and spices ($176 million).
• U.S. imports of services from Indonesia were an estimated $518 million in 2020, 53.5 percent ($597 million) less than 2019, but 1 percent greater than 2010 levels. Leading services imports from Indonesia to the U.S. were in the travel, technical and other services, and financial services sectors.
Trade Balance
• The U.S. goods trade deficit with Indonesia was $12.8 billion in 2020, a 3.6 percent increase ($442 million) over 2019.
• The United States has a services trade surplus of an estimated $1.4 billion with Indonesia in 2020, down 21.2 percent from 2019.
Investment
• U.S. foreign direct investment (FDI) in Indonesia (stock) was $18.7 billion in 2020, a 3.2 percent decrease from 2019. U.S. direct investment in Indonesia is led by mining, professional, scientific, and technical services, and manufacturing.
• Indonesia's FDI in the United States (stock) was $461 million in 2020, up 10.0 percent from 2019. There is no information on the distribution of Indonesia FDI in the U.S.
• Sales of services in Indonesia by majority U.S.-owned affiliates were $2.8 billion in 2018 (latest data available), while sales of services in the United States by majority Indonesia-owned firms were $120 million.
