Indonesia–China Trade Relations: Mutual Benefits but Policy Dilemmas

Indonesia’s trade relationship with China has deepened significantly, with China accounting for around a quarter of exports and a third of imports. Export patterns remain concentrated in commodities such as coal, palm oil and nickel-based products, with limited progress in higher value-added manufacturing. At the same time, imports from China play a critical role in supporting domestic production, particularly through intermediate and capital goods. Evidence from 2010–2023 shows that non-tariff measures, including sanitary and phytosanitary rules and trade remedies, reduce imports—especially from China—while also constraining exports in related sectors, highlighting emerging policy trade-offs.

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