The Iran-Israel Conflict: How Does it Affect Trade with Indonesia?

The Central Statistics Agency (BPS) reports that the conflict between Iran and Israel has not significantly impacted Indonesian trade.

Acting Head of BPS, Amalia A. Widyasanti, stated that in 2023, the value of Indonesia's trade with Iran was only US$206.85 million, equivalent to 1.08% of the total value of national trade with the Middle East region.

This trade value consisted of Indonesian exports to Iran worth US$195.13 million, with the main commodities being fruits, vehicles and parts, and various chemical products.

Imports from Iran amounted to US$11.72 million, with the main commodities being fruits, mineral fuels, and organic chemicals.

Meanwhile, the value of Indonesia's trade with Israel in 2023 was smaller, at US$187.70 million, contributing 0.98% to the total value of national trade with the Middle East region.

In detail, the value of Indonesian exports to Israel in 2023 was approximately US$165.77 million. Exported commodities included animal and vegetable fats and oils, footwear, and electrical machinery and equipment.

Imports from Israel amounted to only US$21.93 million, with the main commodities being mechanical machinery and equipment, tools and equipment made of base metals, and electrical machinery and equipment.

"In general, it can be concluded that the value of Indonesia's goods trade with Iran and Israel is relatively small; neither is a major trading partner for Indonesia in the Middle East region," said Amalia in an online press conference on Monday (22/4/2024).

Amalia mentioned that the Middle Eastern countries that trade most with Indonesia are Saudi Arabia, the United Arab Emirates, and Oman.

"The value of Indonesia's international trade with the Middle East region reached US$19.20 billion," she said.

This value only contributed 3.99% to the total value of Indonesia's foreign trade in 2023.