70 Consecutive Months Without Pause! Indonesia's Surplus Hits US$2.23 Billion, Here Are the Main Drivers
The Central Statistics Agency (BPS) in its latest release reported that Indonesia’s cumulative trade balance surplus for the period January to February 2026 reached US$2.23 billion. This figure marks a surplus for 70 consecutive months since May 2020. Indonesia’s trade balance surplus is inseparable from the positive performance of processed industry exports, which continued to grow amid the weakening of agricultural and mining product exports.
“Processed industry exports in January-February 2026 reached US$37.06 billion, growing 6.69% compared to the same period last year. Several commodities with good performance include processed palm oil products, nickel processed products, organic basic chemical products sourced from agricultural products, and four-wheeled or more motor vehicles,” explained the Head of BPS Indonesia, Amalia Adininggar Widyasanti, in a written statement in Jakarta on Wednesday (1/4).
Amalia continued that in February 2026, China became the main export destination for several flagship processed industry commodities such as processed palm oil products, nickel processed products, and basic chemical products sourced from agricultural products.
Several main export destinations for processed palm oil products in February 2026 included China at US$556.31 million (19.19%), India US$433.95 million (14.97%), and Pakistan US$212.20 million (7.32%).
The United States and the United Arab Emirates (UAE) also recorded high growth. Exports to the United States reached US$177.91 million or grew 56.18% (y-on-y), while to the UAE at US$63.89 million or surged 458.75% (y-on-y).
In terms of trends, exports of processed palm oil to the UAE continue to increase. The value was recorded at US$231.99 million in 2023, rising to US$392.09 million in 2024, and further increasing to US$461.80 million in 2025, contributing 14.24% to the total processed palm oil exports in 2025. This increase was also driven by the Indonesia-UAE free trade agreement effective since September 2023, which provides 0% tariffs for various commodities, including processed palm oil products.
Meanwhile, BPS also recorded significant increases in nickel processed product exports to several countries. In February 2026, exports to China reached US$697.58 million or grew 68.25% (y-on-y). Increases also occurred in exports to Japan, which reached US$142.12 million or grew 67.39% (y-on-y), as well as to Singapore at US$46.72 million or surged 665.70% (y-on-y).
Indonesia targets the Japanese market for exports of EFB pellets and palm kernel shells. With potential equivalent to 38,760 MW, palm biomass becomes a new mainstay for state foreign exchange in 2026.
As one of the world’s largest coconut producers, Indonesia has comparative advantages that have not yet been maximally exploited.