Editing Economy of Indonesia (section)

==Foreign economic relations==
=== Trade statistics ===
{| class="wikitable"
!Year
!Goods exports<br /><small>(billion US$)</small><ref>{{Cite web |title=Goods exports (BoP, current US$) - Indonesia |url=https://data.worldbank.org/indicator/BX.GSR.MRCH.CD?end=2023&locations=ID&most_recent_value_desc=true&start=1981 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
!Goods imports<br /><small>(in</small> b<small>illion US$)</small><ref>{{Cite web |title=Goods imports (BoP, current US$) - Indonesia |url=https://data.worldbank.org/indicator/BM.GSR.MRCH.CD?end=2023&locations=ID&most_recent_value_desc=true&start=1981 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
!Net trade<br /><small>(in</small> b<small>illion US$)</small><ref>{{Cite web |title=Net trade in goods (BoP, current US$) - Indonesia |url=https://data.worldbank.org/indicator/BN.GSR.MRCH.CD?end=2023&locations=ID&most_recent_value_desc=true&start=1981 |access-date=2025-01-25 |website=World Bank Open Data}}</ref>
|-
|2023
|{{Increase}}$257.7
|{{Increase}}$211.5
|{{Increase}}$46.2
|-
|2020
|{{Increase}}$163.4
|{{Increase}}$135.1
|{{Increase}}$28.3
|-
|2015
|{{Decrease}}$149.1
|{{Increase}}$135.1
|{{Increase}}$14.1
|-
|2010
|{{Increase}}$150.0
|{{Increase}}$118.9
|{{Increase}}$31.0
|-
|2000
|{{Increase}}$65.4
|{{Increase}}$40.4
|{{Increase}}$25.0
|-
|1990
|{{Increase}}$26.8
|{{Increase}}$21.5
|{{Increase}}$5.4
|}

===ASEAN===
Until the end of 2010, intra-ASEAN trade was still low as trade involved mainly exports to countries outside the region, with the exception of Laos and Myanmar, whose foreign trade was ASEAN-oriented.<ref>{{cite web|url=http://www.antaranews.com/en/news/77403/asean-feared-to-become-multinational-companies-market-only|work=Anatara News|title=ASEAN feared to become multinational companies market only|date=10 November 2011|access-date=10 November 2011|archive-date=12 January 2012|archive-url=https://web.archive.org/web/20120112112614/http://www.antaranews.com/en/news/77403/asean-feared-to-become-multinational-companies-market-only|url-status=live}}</ref> In 2009, realised [[foreign direct investment]] (FDI) was US$37.9 billion and increased two-fold in 2010 to US$75.8 billion.

The ASEAN Framework Agreement on Trade in Services (AFAS) was adopted at the ASEAN Summit in Bangkok in December 1995.<ref>{{cite web|url=http://www.asean.org/6628.htm |title=ASEAN Framework Agreement on Services (1995) |publisher=ASEAN |access-date=21 December 2008 |url-status=dead |archive-url=https://web.archive.org/web/20091226223120/http://www.asean.org/6628.htm |archive-date=26 December 2009 }}</ref> Under the agreement, member states enter into successive rounds of negotiations to liberalise trade in services with the aim of submitting increasingly higher levels of commitment. ASEAN has concluded seven packages of commitments under AFAS.<ref>{{cite web|url=http://www.asean.org/6626.htm |title=Overview |publisher=ASEAN |access-date=21 December 2008 |url-status=dead |archive-url=https://web.archive.org/web/20110206130652/http://www.asean.org/6626.htm |archive-date=6 February 2011 }}</ref>

Mutual Recognition Agreements (MRAs) have been agreed upon by ASEAN for eight professions: physicians, dentists, nurses, architects, engineers, accountants, surveyors, and tourism professionals. Individuals in these professions will be free to work in any ASEAN states effective 31 December 2015.<ref>{{cite news|last1=Buranasomphop|first1=Duangkamol|title=Asean 2015: Free movement of labour|url=http://en.aectourismthai.com/content1/1411|access-date=11 May 2015|publisher=AEC Tourism Thailand|date=14 June 2014|archive-url=https://web.archive.org/web/20150518070624/http://en.aectourismthai.com/content1/1411|archive-date=18 May 2015|url-status=dead}}</ref><ref>{{cite news|title=Concern over free flow of labour after AEC starts|url=http://www.nationmultimedia.com/national/Concern-over-free-flow-of-labour-after-AEC-starts-30238365.html|access-date=11 May 2015|work=The Nation|date=13 July 2014|archive-date=18 May 2015|archive-url=https://web.archive.org/web/20150518102622/http://www.nationmultimedia.com/national/Concern-over-free-flow-of-labour-after-AEC-starts-30238365.html|url-status=dead}}</ref><ref>{{cite web|title=Why the AEC in 2015 Will Lead to Few Changes in Thailand |url=http://www.norcham.com/news/why-the-aec-in-2015-will-lead-to-few-changes-in-thailand |website=Thai-Norwegian Chamber of Commerce |access-date=12 May 2015 |url-status=dead |archive-url=https://web.archive.org/web/20150518093814/http://www.norcham.com/news/why-the-aec-in-2015-will-lead-to-few-changes-in-thailand |archive-date=18 May 2015 }}</ref>

In addition, six member states ([[Malaysia]], [[Vietnam]] (2 exchanges), Indonesia, [[Philippines]], [[Thailand]], and [[Singapore]]) have collaborated on integrating their stock exchanges, which includes 70% of its transaction values with the goal to compete with international exchanges.<ref>{{cite web |url=http://investasi.kontan.co.id/news/indonesia-belum-akan-masuk-asean-linkage |title=Indonesia belum akan masuk Asean Linkage |author=Anna Suci Perwitasari |date=13 June 2012 |access-date=17 January 2014 |archive-date=10 December 2014 |archive-url=https://web.archive.org/web/20141210101112/http://investasi.kontan.co.id/news/indonesia-belum-akan-masuk-asean-linkage |url-status=live }}</ref>

Single market will also include the [[ASEAN Single Aviation Market]] (ASEAN-SAM), the region's aviation policy geared towards the development of a [[Open skies|unified and single aviation market]] in [[Southeast Asia]]. It was proposed by the ASEAN Air Transport Working Group, supported by the ASEAN Senior Transport Officials Meeting, and endorsed by the ASEAN Transport Ministers.<ref name="ASEAN SAM">{{cite web|url=http://www.asian-aerocad.com/news/news.php?newsid=23 |title=Asean Single Aviation Market |access-date=26 September 2008 |work=Straits Times |location=Singapore |date=2 February 2008 |url-status=dead |archive-url=https://web.archive.org/web/20081209063906/http://www.asian-aerocad.com/news/news.php?newsid=23 |archive-date=9 December 2008 }}</ref> It is expected to liberalise air travel between member states allowing ASEAN airlines to benefit directly from the growth in air travel, and also free up tourism, trade, investment, and service flows.<ref name="ASEAN SAM" /><ref name="LHL on SAM">{{cite news |url=http://news.xinhuanet.com/english/2007-11/01/content_6990497.htm |title=Singaporean PM urges ASEAN to liberalise aviation |access-date=26 September 2008 |work=chinaview.cn |publisher=Xinhua News Agency |date=1 November 2007 |archive-date=11 December 2008 |archive-url=https://web.archive.org/web/20081211012727/http://news.xinhuanet.com/english/2007-11/01/content_6990497.htm |url-status=dead }}</ref> This policy supersedes existing unilateral, bilateral, and multilateral air services agreements among member states which are inconsistent with its provisions.

===Japan===
Indonesia and Japan signed the [[Indonesia–Japan Economic Partnership Agreement]] (IJEPA), which had come into effect on 1 July 2008. The agreement was Indonesia's first bilateral free-trade agreement to ease the cross-border flow of goods and people as well as investment between both countries.<ref>{{Cite web|url=https://www.indonesia-investments.com/news/todays-headlines/indonesia-japan-economic-partnership-agreement-ijepa-reviewed/item5244?|title=Indonesia-Japan Economic Partnership Agreement (IJEPA) Reviewed |publisher=Indonesia Investments|website=indonesia-investments.com|access-date=28 January 2018}}</ref> In 2012, there were between 1,200 and 1,300 Japanese corporates operating in Indonesia, with some 12,000 Japanese nationals living in Indonesia. Japan has been investing in Indonesia for decades, particularly in the automotive, electronic goods, energy, and mining sectors. Prior to the formation of the Indonesian Republic, the Japanese had viewed Indonesia as an important source of natural resources. The Japanese need of natural resources was among the reasons that led the nation to advance further to the south in their military conquests during World War II. Today Indonesia is Japan's major supplier for [[natural rubber]], [[liquefied natural gas]], [[coal]], minerals, [[Pulp (paper)|paper pulp]], seafood such as [[shrimp]] and [[tuna]], and [[coffee]]. Traditionally Indonesia has been regarded as a major market of Japanese automotive and electronic goods. For Japanese businesses, Indonesia has been a location for low-cost manufacturing operations as well as being the source of various natural resources required by those operations. Approximately 1,000 Japanese companies operate in Indonesia which employ approximately 300,000 people.<ref>{{Cite web|url=https://www.thejakartapost.com/news/2010/08/23/huge-opportunity-japanese-investment.html|title=Huge opportunity from Japanese investment - Mon, August 23, 2010|first=The Jakarta|last=Post|website=The Jakarta Post}}</ref> Major Japanese factories are concentrated east of Jakarta with high concentrations in [[Bekasi]], [[Cikarang]] and [[Karawang]], [[West Java]].

===China===
[[China–Indonesia relations#Trade and investment|Trade with China]] has increased since the 1990s, and in 2014, China became Indonesia's second-largest export destination after Japan.<ref>{{cite web|url=http://atlas.media.mit.edu/en/profile/country/idn/|title=Indonesia|access-date=20 November 2016|archive-date=1 April 2017|archive-url=https://web.archive.org/web/20170401221338/http://atlas.media.mit.edu/en/profile/country/idn/|url-status=dead}}</ref> Trade between China and Indonesia is on the rise, especially after the implementation of [[ASEAN–China Free Trade Area|ACFTA]] since early 2010. Indeed, while in 2003 trade between Indonesia and China reached only US$3.8 billion, in 2010 it multiplied almost 10 times and reached US$36.1 billion.<ref name="iisd">{{cite web
 |url        =http://www.iisd.org/tkn/pdf/indonesia_china_relations.pdf
 |title      =Indonesia – China Trade Relations: The deepening of economic integration amid uncertainty?
 |author     =Alexander C. Chandra and Lucky A. Lontoh
 |year       =2011
 |publisher  =International Institute for Sustainable Development
 |access-date =5 March 2013
 |archive-url=https://web.archive.org/web/20140610114237/http://www.iisd.org/tkn/pdf/indonesia_china_relations.pdf
 |archive-date=10 June 2014
 |url-status=dead
}}</ref> China's [[Reform and opening up|transformation]] into Fastest growing country in the 21st century has led to an increase of foreign investments in the [[bamboo network]], a network of [[overseas Chinese]] businesses operating in the markets of Southeast Asia that share common family and cultural ties.<ref name=FT>{{cite news|last=Quinlan|first=Joe|title=Insight: China's capital targets Asia's bamboo network|url=https://www.ft.com/content/67554d8a-920f-11dc-8981-0000779fd2ac |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/67554d8a-920f-11dc-8981-0000779fd2ac.html |archive-date=10 December 2022 |url-access=subscription|newspaper=Financial Times|date=13 November 2007}}</ref><ref name="Weidenbaum">{{cite book|author=Murray L Weidenbaum|title=The Bamboo Network: How Expatriate Chinese Entrepreneurs are Creating a New Economic Superpower in Asia|url=https://archive.org/details/bamboonetworkhow00weid|url-access=registration|date=1 January 1996|publisher=Martin Kessler Books, Free Press|isbn=978-0-684-82289-1|pages=[https://archive.org/details/bamboonetworkhow00weid/page/4 4]–8}}</ref> However the free trade with China has caused much anxiety in Indonesia, since inflows of cheap products from China could harm Indonesian industry. Indonesian private sector and civil society organizations vigorously lobbied the Indonesian government and members of parliament, insisting that Indonesia should either pull out of the agreement or renegotiate its terms with Beijing.

China has remained on top of Indonesia's key major trading partners, serving as the country's largest export and import market. China serves as Indonesia's largest export destination after overtaking Japan and United States, reaching US$16.8 billion.<ref>{{cite news|title=China keen to work with Indonesia on BRI|url=http://www.straitstimes.com/asia/east-asia/china-keen-to-work-with-indonesia-on-bri|work=The Straits Times|date=10 February 2018|language=en}}</ref><ref>{{cite news|publisher=Indonesia Investments|title=Trade Balance Indonesia: $678 Million Deficit in January 2018 {{!}} Indonesia Investments|url=https://www.indonesia-investments.com/business/business-columns/trade-balance-indonesia-678-million-deficit-in-january-2018/item8605|work=www.indonesia-investments.com|language=en-gb}}</ref><ref>{{cite web|title=OEC - Indonesia (IDN) Exports, Imports, and Trade Partners|url=https://atlas.media.mit.edu/en/profile/country/idn/|website=atlas.media.mit.edu|language=en|access-date=30 June 2021|archive-date=13 June 2019|archive-url=https://web.archive.org/web/20190613210428/https://atlas.media.mit.edu/en/profile/country/idn/|url-status=dead}}</ref> China is also Indonesia's most important source of imports, reaching US$30.8 billion, or 22.7% of Indonesian imports in 2016.<ref>{{cite web|title=Top Indonesia Imports|url=http://www.worldsrichestcountries.com/top_indonesia_imports.html|website=www.worldsrichestcountries.com}}</ref> The balance however was in favour of China as Indonesia booked a trade deficit of US$14 billion in 2016.<ref>{{cite web|title=Indonesia's Top Trading Partners|url=http://www.worldstopexports.com/indonesias-top-15-import-partners/|website=World's Top Exports|date=26 December 2017}}</ref>

From China's perspective, since 2010 ASEAN as a whole has become its fourth-largest trading partner after the European Union, Japan and the United States. Among ASEAN member countries, Indonesia was China's fourth-largest trading partner, which, according to data as of May 2010 from the Ministry of Commerce of the People's Republic of China, amounted to US$12.4 billion, after [[Malaysia]] (US$22.2 billion), [[Singapore]] (US$17.9 billion) and [[Thailand]] (US$15.7 billion).<ref name="iisd"/> With China's economic rise, Indonesia has been intensifying its trade relationship with China to counterbalance its ties with the West.<ref>{{cite web|last1=Choiruzzad |first1=Shofwan |editor-first1=Prodita |editor-last1=Sabarini |url=http://theconversation.com/indonesia-forges-stronger-ties-with-china-to-boost-economy-34004|title=Indonesia forges stronger ties with China to boost economy|access-date=20 November 2016|date=19 November 2014 |doi=10.64628/AA.nadrsnew9 }}</ref> By 2020, China had become Indonesia's largest export destination.<ref>{{cite news |title=Indonesia Posts Largest Trade Surplus Since 2011 as Coronavirus Disrupts Imports From China |url=https://jakartaglobe.id/business/indonesia-posts-largest-trade-surplus-since-2011-as-coronavirus-disrupts-imports-from-china |access-date=15 June 2020 |work=Jakarta Globe |date=16 March 2020}}</ref>

===South Korea===
In the past, the relations were only developed around trade and investments, such as the forestry and garment sectors. Today the cooperation has been expanded to a number of mega projects and advanced industries. With US$27 billion in bilateral trade, South Korea became the fourth biggest trading partner of Indonesia in 2012. It became the third-biggest foreign investor in Indonesia, with US$1.94 billion in investment.

There are large numbers of South Korean companies that have been investing and operating in Indonesia, such as Miwon (Daesang Corporation), [[Lotte Department Store|Lotte]], Yong Ma, [[Hankook]], [[Samsung]], [[LG]], [[Kia]] and [[Hyundai Group|Hyundai]]. In 2011, Hankook announced a US$353 million investment into a production plant located in Bekasi, West Java, Indonesia.<ref>{{Cite web|url=http://www.thejakartapost.com/news/2011/01/20/hankook-announces-us353-million-investment.html |title=Hankook announces US$353 million investment |author=Rangga D Fadillah |publisher=The Jakarta Post |url-status=dead |archive-url=https://web.archive.org/web/20110124161517/http://www.thejakartapost.com/news/2011/01/20/hankook-announces-us353-million-investment.html |archive-date=2011-01-24 }}</ref>

In 2019, trade between Indonesia and South Korea was worth $15.65 billion, and between 2015 and 2019 South Korean companies invested nearly $7 billion in Indonesia. In December 2020, Indonesia and South Korea signed a comprehensive economic partnership. It is equivalent to a [[free trade agreement]], though focuses on a broader scope of economic cooperation. Under the deal, Indonesia will scrap 94.8% of tariffs on South Korean products while South Korea will scrap 95.8% of tariffs on Indonesian products.<ref>{{Cite web|title=Indonesia, South Korea sign CEPA to boost trade, investment|url=https://www.thejakartapost.com/news/2020/12/18/indonesia-south-korea-sign-cepa-to-boost-trade-investment.html|access-date=2021-01-07|website=The Jakarta Post|language=en}}</ref><ref>{{Cite web|title=S. Korea, Indonesia Sign CEPA|url=http://world.kbs.co.kr/service/news_view.htm?lang=e&Seq_Code=158364|access-date=2021-01-07|website=world.kbs.co.kr|language=en}}</ref><ref>{{Cite news|date=2020-12-18|title=South Korea and Indonesia sign deal to boost trade, investment|language=en|work=Reuters|url=https://www.reuters.com/article/us-southkorea-indonesia-trade-idUSKBN28S0EZ|access-date=2021-01-07}}</ref>

===United States===
At the beginning of the post-Suharto era, US exports to Indonesia in 1999 totaled $2 billion, down significantly from $4.5 billion in 1997. The main exports were construction equipment, machinery, aviation parts, chemicals, and agricultural products. US imports from Indonesia in 1999 totaled $9.5 billion and consisted primarily of clothing, machinery and transportation equipment, petroleum, natural rubber, and footwear. Financial assistance to Indonesia is coordinated through the [[Consultative Group on Indonesia]] (CGI) formed in 1989. It includes 19 donor countries and 13 international organizations that meet annually to coordinate donor assistance. In 2019, as Indonesia's share of global trade exceeded 0.5 percent, the United States Trade Representatives decided not to classify Indonesia as a "developing country."<ref>{{Cite web|url=https://ustr.gov/about-us/policy-offices/press-office/press-releases/2020/february/ustr-updates-list-developing-and-least-developed-countries-under-us-cvd-law|title=USTR Updates List of Developing and Least-Developed Countries Under U.S. CVD Law {{!}} United States Trade Representative|website=ustr.gov|access-date=2020-02-27}}</ref> Despite a revocation of this status, the Indonesian government has assured that this would not change the current [[Generalized System of Preferences]] facilities that Indonesia had enjoyed from the United States.<ref>{{Cite web|url=https://www.thejakartapost.com/news/2020/02/25/revocation-of-indonesias-developing-country-status-will-not-affect-gsp-government.html|title=Revocation of Indonesia's developing country status will not affect GSP: Government|website=The Jakarta Post|language=en|access-date=2020-02-27}}</ref>

===European Union===
The EU and Indonesia have built robust commercial relations, with [[bilateral trade]] amounting to approximately €25 billion in 2012 resulting in a sizeable €5.7 billion trade surplus for Indonesia with the EU. In the past few years trade between EU and Indonesia has been marked by an upward trend. Whereas total trade was worth almost €16 billion in 2009, by 2011 it had already reached €23.5 billion. For the EU, Indonesia is the 24th largest import source (share 0.9%) and the 30th largest export destination (share 0.6%). Inside the ASEAN-region, Indonesia ranks fourth in terms of total trade. The EU is Indonesia's 4th largest trading partner after [[Japan]], [[China]] and [[Singapore]], representing almost 10% of its total external trade. The EU is the second largest investor in the Indonesian economy.<ref name="europa.eu">{{cite web|url=http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/ |title=Eurostat Home |access-date=2014-02-19 |url-status=dead |archive-url=https://web.archive.org/web/20140124063828/http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/ |archive-date=2014-01-24 }}</ref>
Indonesia mostly exports to the EU agricultural products and processed resources, mainly palm oil, fuels and mining products, textiles and furniture. EU exports to Indonesia consist mainly of high-tech machinery and transport equipment, chemicals and various manufactured goods. Essentially, trade flows between Indonesia and the EU complement each other.<ref name="europa.eu"/>
After negotiations on a free trade agreement with ASEAN got increasingly difficult, the EU began pursuing negotiations with individual ASEAN states. The EU and Indonesia are currently working towards an ambitious Comprehensive Economic Partnership Agreement covering trade, investment and services.<ref>{{Cite web|url=https://www.thejakartapost.com/news/2009/11/09/boosting-euindonesia-relations.html|title=Boosting EU-Indonesia relations - Mon, November 9, 2009|first=The Jakarta|last=Post|website=The Jakarta Post}}</ref>

===India===
On 25 January 2011, after talks by Indian Prime Minister [[Manmohan Singh]] and visiting President of Indonesia [[Susilo Bambang Yudhoyono]], India and Indonesia had signed business deals worth billions of dollars and set an ambitious target of doubling trade over the next five years.<ref>{{cite news| url=https://www.bbc.co.uk/news/world-asia-pacific-12274815 | work=BBC News | title=India and Indonesia aim to double trade | date=25 January 2011}}</ref> India also has further economic ties with Indonesia through its free trade agreement with ASEAN, of which Indonesia is a member.<ref>{{cite news| url=https://www.bbc.co.uk/news/business-12630418 | work=BBC News | title=India and Asean aim to boost trade | date=3 March 2011}}</ref> The two countries target to achieve bilateral trade of $25 billion by 2015, with cumulative Indian investments of $20 billion in Indonesia.<ref name="bp">{{cite web|title=Indian pushes for early economic accord with Indonesia |url=http://news.biharprabha.com/2014/04/indian-pushes-for-for-early-economic-accord-with-indonesia/|work=IANS|date=24 April 2014|publisher=news.biharprabha.com|access-date=24 April 2014}}</ref>