Indonesian Political, Business & Finance News

Indonesia's Exports to the Middle East Only 4.2 Percent

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Trade

Data from the Central Statistics Agency (BPS) and Indonesia Eximbank Institute indicate that Indonesia’s exports to the Middle East amount to only around 4.2% of total national exports, with the main commodities including crude palm oil (HS 1511), jewellery (HS 7113), and motor vehicles and other transport equipment (HS 8703).

“The escalation of conflict in the Middle East has the potential to increase volatility in global energy prices as well as the costs of international trade logistics,” said Head of Indonesia Eximbank Institute Rini Satriani in an official statement, quoted on Saturday, 21 March 2026.

However, for Indonesia, she said, the direct impact on trade is expected to be relatively limited given the small trade exposure to the region. Rini explained that Indonesia’s imports from the Middle East region reach around 3.9% of total national imports and are dominated by energy commodities, particularly oil. This trade structure shows that Indonesia’s direct trade exposure to the conflict zone is relatively limited.

Based on the latest data, the majority of Indonesia’s exports flow to other regions such as East Asia (36.4%), Southeast Asia (20.8%), North America (11.5%), South Asia (9.6%), and Western Europe (5.7%). Therefore, Rini stated, economic dynamics in those regions remain the determining factors for national export performance.

Rini emphasised that developments in the conflict and their implications for global trade are continuously monitored, especially those related to the stability of international energy routes. Indonesia Eximbank is carefully monitoring dynamics in the Middle East region, including the security of strategic shipping lanes such as the Strait of Hormuz, which is one of the world’s main arteries for energy trade.

The region plays a strategic role in the global energy system, contributing more than 30% of world oil production, while around 20–30% of global oil trade passes through the Strait of Hormuz. Disruptions to this route could quickly affect international energy prices and increase global trade logistics costs.

Although Indonesia’s oil imports do not directly come from the Middle East, the impact can still be felt through regional trade routes. Around 75% of Indonesia’s oil imports come from Singapore and Malaysia, which are oil trading and processing hubs in Asia. These two countries also import crude oil from the Middle East, so supply disruptions in the region could drive up energy prices faced by Indonesia.

The Indonesia Eximbank Institute is also observing the impact of changes in global energy distribution on major Middle Eastern oil importing countries such as China, Japan, India, and South Korea. These countries are major energy consumers from the Gulf region as well as important export markets for Indonesia. Rising energy costs could pressure industrial activities in those countries and affect demand for Indonesian export products.

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