Indonesia is a country with abundant natural resources, making it a major player in the global market. The country exports a variety of commodities, ranging from agricultural products to mineral resources. In this article, we will discuss the top five export commodities of Indonesia.
Palm Oil
Palm oil is the highest export commodity of Indonesia, contributing to almost 13% of the country’s total export value. The demand for palm oil is high as it is used in a variety of products, including food, cosmetics, and biofuels. Indonesia is the largest producer of palm oil globally, with a production volume of around 43 million tons.
The palm oil industry has faced criticism for its impact on the environment and human rights abuses. However, the Indonesian government has taken initiatives to ensure sustainable practices and improve the living conditions of workers in the industry.
Natural Gas
Natural gas is the second-highest export commodity of Indonesia, with a contribution of around 11% to the country’s total export value. The country has the tenth-largest natural gas reserves globally and is the fifth-largest exporter of liquefied natural gas (LNG). Japan is the largest importer of Indonesian LNG, followed by South Korea and China.
Indonesia has set a target to increase its annual natural gas production to 12,5 million tons by 2030. The government has also taken initiatives to improve the investment climate and attract more investors to the natural gas industry.
Coal
Coal is the third-highest export commodity of Indonesia, with a contribution of around 9% to the country’s total export value. The country is the largest exporter of thermal coal, mainly to countries in Asia such as China and India. Coal is used in power generation, steel production, and cement manufacturing.
The Indonesian government has set a target to produce 550 million tons of coal annually by 2020. However, the coal industry has faced challenges due to environmental concerns and declining prices.
Crude Petroleum
Crude petroleum is the fourth-highest export commodity of Indonesia, with a contribution of around 6% to the country’s total export value. The country has the 23rd largest crude oil reserves globally and is a member of the Organization of the Petroleum Exporting Countries (OPEC).
Indonesia has set a target to increase its crude oil production to 775,000 barrels per day by 2025. The government has also taken initiatives to improve the investment climate in the oil and gas sector.
Rubber
Rubber is the fifth-highest export commodity of Indonesia, with a contribution of around 4% to the country’s total export value. The country is the second-largest producer of natural rubber globally, after Thailand. Rubber is used in a variety of products, including tires, gloves, and footwear.
Indonesia has set a target to produce 4.7 million tons of rubber annually by 2020. The government has also taken initiatives to improve the quality of rubber produced in the country and increase exports to other countries.
Conclusion
In conclusion, Indonesia is a major player in the global market, exporting a variety of commodities such as palm oil, natural gas, coal, crude petroleum, and rubber. The government has taken initiatives to ensure sustainable practices and improve the investment climate in these industries. However, these industries have faced challenges due to environmental concerns and declining prices. It is crucial for the government and industry players to address these challenges and ensure the long-term sustainability of these industries.
