Downstreaming as a Pillar, Indonesia's Trade Surplus Persists for 70 Months

JAKARTA – Indonesia’s trade balance has once again recorded a surplus in early 2026. This positive trend has been ongoing for nearly six years or 70 consecutive months.

The Central Statistics Agency (BPS) recorded a cumulative surplus of US$2.23 billion for January to February 2026.

BPS Chief Amalia Adininggar Widyasanti stated that the performance of the processing industry exports has become the main pillar amid pressures on raw commodities.

“Processing industry exports for January–February 2026 reached US$37.06 billion, growing 6.69 percent compared to the same period last year,” Amalia said in a written statement on Wednesday (1/4/2026).

Amalia assessed that the dominance of this sector is important when exports from the agriculture and mining sectors weaken.

The downstreaming strategy is beginning to show tangible results. The role of the processing industry sector is evident in maintaining trade balance.

China remains the main destination for Indonesian exports, particularly for processed palm oil, nickel, and basic chemicals.

Palm oil derivative exports to China in February 2026 reached US$556.31 million or 19.19 percent of total exports. India absorbed US$433.95 million or 14.97 percent. Pakistan amounted to US$212.20 million or 7.32 percent.

Demand from non-traditional markets is also increasing. Exports to the United States grew 56.18 percent year-on-year to US$177.91 million.

Exports to the United Arab Emirates surged 458.75 percent to US$63.89 million. The upward trend has been seen in recent years.

The value of palm oil derivative exports to that country rose from US$231.99 million in 2023 to US$392.09 million in 2024. That figure increased again to US$461.80 million in 2025.

This increase is driven by the Indonesia–United Arab Emirates free trade agreement that has been in effect since September 2023. The agreement provides zero percent tariffs for a number of products.

Exports to Japan rose 67.39 percent to US$142.12 million. Shipments to Singapore surged 665.70 percent to US$46.72 million.

These changes indicate a shift in Indonesia’s export structure. Value-added products are beginning to replace the dominance of raw commodities.

“In the midst of global pressures on commodity prices, strengthening the processing industry sector is key to maintaining the sustainability of the trade surplus,” she said.