India Becomes Indonesia's Third-largest Export Destination Amid Global Trade Shifts

In a significant realignment of global trade, India surpassed Japan to become Indonesia's third-largest export destination in Q2 2025. Despite a decline in imports from Indonesia, India's focus on renewable energy and shifting trade patterns have reshaped the economic landscape, with implications for future market strategies.

India has risen to become Indonesia's third-largest export destination by the second quarter of 2025, according to a Rubix Data Sciences report, overtaking Japan amidst global trade realignments. This shift comes as Indonesia's exports to India surged by 9.6 percent, with a notable rise in exports to China and the United States as well.

The report anticipates further strategic redirection of Indonesian exports towards high-growth markets like China and India, despite a newly imposed 19 percent tariff by the United States. With low production costs and a diverse range of exports including coal briquettes and palm oil, Indonesia remains competitive among ASEAN nations.

India's shift away from coal, amidst the growing renewable energy focus, saw its imports from Indonesia fall to USD 22.8 billion by FY2025, with coal briquettes' share declining substantially. Nonetheless, India's burgeoning demand for palm oil, despite higher export levies, suggests ongoing and complex trade engagements between the two nations. (ANI)