Indonesia is a country blessed with abundant natural resources that are in high demand globally. One of the major destinations for Indonesian exports is China. Since the opening of diplomatic relations between the two countries in 1950, the trade partnership between Indonesia and China has grown significantly. In this article, we will discuss the various commodities that Indonesia exports to China and their significance to the Indonesian economy.
Overview of Indonesian Export to China
China is currently the second-largest trading partner of Indonesia after Japan. Indonesia’s total exports to China in 2020 amounted to US$35.8 billion, accounting for 14.4% of the country’s total exports. The major commodities exported to China include palm oil, coal, copper, natural rubber, and nickel. These products are essential to the Chinese economy, making Indonesia a vital partner in China’s economic growth.
Palm Oil
Indonesia is the world’s largest producer of palm oil, and China is one of the major importers of this commodity. In 2020, Indonesia exported over 24 million tons of palm oil to China, accounting for 40% of China’s total palm oil imports. Palm oil is used in the production of various products, including food, cosmetics, and biofuels. The demand for palm oil is expected to continue growing in China, making Indonesia a significant supplier of this commodity.
Coal
Indonesia is also one of the world’s largest producers of coal, and China is the largest importer of this commodity. In 2020, Indonesia exported around 104 million tons of coal to China, accounting for 34% of China’s total coal imports. The demand for coal in China is high, primarily for use in the production of electricity. Indonesia’s strategic location makes it an ideal supplier of coal to China, with the ability to transport coal cost-effectively.
Copper
Copper is a valuable commodity used in the production of various products, including electrical cables, plumbing, and industrial machinery. Indonesia is one of the major exporters of copper to China, with exports valued at US$3.6 billion in 2020. China is the largest consumer of copper globally, making Indonesia a vital partner in the Chinese copper industry.
Natural Rubber
Indonesia is the world’s second-largest producer of natural rubber, and China is one of the major importers of this commodity. In 2020, Indonesia exported over 1 million tons of natural rubber to China, accounting for 23% of China’s total natural rubber imports. Natural rubber is used in the production of various products, including tires, gloves, and footwear. The demand for natural rubber is expected to continue growing in China, making Indonesia a significant supplier of this commodity.
Nickel
Nickel is a valuable commodity used in the production of stainless steel and various other products. Indonesia is one of the major exporters of nickel to China, with exports valued at US$1.8 billion in 2020. China is the world’s largest consumer of nickel, making Indonesia a vital partner in the Chinese nickel industry.
Conclusion
Indonesia’s exports to China are essential to the country’s economic growth. The commodities exported to China contribute significantly to the Indonesian economy, providing employment opportunities and generating revenue. The partnership between Indonesia and China is expected to continue growing, with the demand for these commodities continuing to rise in China. As such, Indonesia is well-positioned to be a vital partner in China’s economic growth.
