Last updated on February 21st, 2025 at 10:10 am
Before we delve further into exploring the various export commodities of Indonesia, let's first understand the meaning of the term 'commodity' in the world of economics.
In the realm of international trade, this concept refers to important goods that meet global market demands, adhere to quality standards, and play a central role in a country's exports.
Understanding the basics of the commodity concept is key to responding to the dynamics of the global economy and formulating a stronger trade strategy.
Together, let's explore the role and impact that commodities have in shaping Indonesia's export landscape. Read on for more information to learn about Indonesia's export commodities!
What is a Commodity?
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A commodity is a tradable good or product that holds value and can be exchanged for similar products. These goods or products are typically easy to trade in markets due to their uniform characteristics and predictable pricing.
Examples of commodities include metals, energy resources such as oil, agricultural products like coffee and wheat, and other goods that possess standardized traits and are traded in commodity markets. Commodities also play a significant role in international trade, contributing to the stability of the global economy.
List of Indonesia's Export Commodities
Indonesia's exports are known for a variety of key commodities that play an essential role in international trade. Here are the top 10 commodities that significantly contribute to exports, as quoted from the official Ministry of Trade website:
Shrimp
Shrimp is one of Indonesia's leading export commodities, particularly in the fisheries industry. Indonesia is one of the largest shrimp producers in the world. This commodity holds a crucial role in the export fisheries sector, with its quality recognized in global markets.
Coffee
Indonesian coffee is famous for its quality, which is why it plays an essential role in global markets, with varieties like Arabica and Robusta. Indonesia is a major producer of high-quality Arabica and Robusta coffee, contributing significantly to the global coffee industry.
Palm Oil
Palm oil, in both its crude form and its derivatives, is one of Indonesia's largest export commodities. Used in the food, cosmetics, and bioenergy industries, palm oil is a key product in international trade.
Cocoa
Indonesian cocoa is a major source of high-quality cocoa beans, contributing significantly to the global chocolate industry. Indonesian cocoa beans are used in the production of various chocolate products worldwide.
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Natural rubber is another important export commodity from Indonesia. It is used in various industries, including automotive and manufacturing, and is known for its quality.
Textiles and Textile Products (TPT)
The textile industry in Indonesia is one of the primary export commodities, including finished garments, fabrics, and various textile products.
Footwear
Footwear exports, such as shoes and sandals, play a significant role in international trade. Indonesian footwear is renowned for its design and quality.
Electronics
Electronic products from Indonesia, including electronic components and consumer electronics, are also key exports. These products have a stable demand in international markets.
Motor Vehicle Components (Automotive)
Automotive components are vital exports, contributing products used in the manufacturing of motor vehicles.
Automotive parts from Indonesia are crucial in vehicle production worldwide.
Furniture
Furniture exports from Indonesia, including wooden furniture and household items, are a significant contributor to international trade. Indonesian furniture is recognized for its design and quality.
These commodities demonstrate the diverse sectors in Indonesia's exports, covering various industries and products, and contributing significantly to the nation's economic growth while playing a central role in global markets.
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Non-Oil and Gas Export Commodities in Indonesia
Non-oil and gas exports, excluding crude oil and natural gas, are a key pillar of Indonesia's economy, accounting for about 70% of total exports. Some of the primary commodities in Indonesia's non-oil and gas exports include:
Agriculture
Agricultural commodities such as palm oil, coffee, rubber, cocoa, tea, and spices are major contributors to non-oil and gas exports. These products hold a significant share in global markets.
Mining
The mining sector also plays an essential role in Indonesia's non-oil and gas exports. Commodities such as nickel, copper, coal, and gold are integral to the country's export profile.
Forestry
Forestry products such as wood, pulp, and paper are vital components of non-oil and gas exports. Processed wood and other forestry products have stable demand.
Industry
Industrial products, including textiles, electronics, and automotive, also fall under non-oil and gas exports. Although not as large as the agricultural and mining sectors, these industries also contribute significantly to Indonesia's non-oil and gas exports.
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In 2022, the value of Indonesia's non-oil and gas exports increased by 33.3%, reaching $258.3 billion, indicating the sector's vital role in the country's economic growth.
This aligns with the efforts of the Directorate General of Plantation to execute a strategic action plan to triple the export of plantation products to reach IDR 1,200 trillion by 2024, in line with the ambitious targets set by the Minister of Agriculture.
Indonesia's Plantation Export Commodities
As one of the leading producers of plantation commodities, Indonesia has a range of export commodities that play a crucial role in the economy. Some of the main export commodities from Indonesia's plantation sector include:
Palm Oil
Palm oil derivatives, such as crude palm oil, are among the primary commodities in Indonesia's plantation exports. This product is used in the food, cosmetic, and fuel industries.
Coffee
Indonesian coffee is renowned globally for its high quality. Arabica and Robusta coffee are the most common varieties exported.
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Indonesia's rubber production, particularly natural rubber, is a major contributor to international markets, used in various industries such as automotive and manufacturing.
Cocoa
Cocoa is another important commodity in Indonesia's plantation exports, with cocoa beans used in chocolate production and other cocoa-based products.
Tea
Although Indonesia is not a global leader in tea production, it remains an important player in the plantation export sector.
Spices
Spices like pepper, cinnamon, nutmeg, and others are also essential commodities in Indonesia's plantation exports.
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These commodities play a crucial role in Indonesia's economic growth and hold a significant share in global export markets, making the plantation sector one of the most vital contributors to the Indonesian economy.
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