28 Years of Trade with Saudi Arabia, Indonesia Always in Deficit

President Joko Widodo received an honorary visit from the Minister of Foreign Affairs of the Kingdom of Saudi Arabia, Prince Faisal Bin Farhan Al Saud, at the Merdeka Palace, Jakarta, on Tuesday (7/6/2022).

In the meeting, President Jokowi and the Saudi Arabian Foreign Minister discussed various matters, ranging from the Hajj pilgrimage to economic issues.

Saudi Arabia is one of Indonesia's largest trading partners in the Middle East.

Based on Comtrade data, in 2021 the value of Indonesia-Saudi Arabia trade reached US$5.55 billion or equivalent to Rp79 trillion (with an exchange rate of Rp14,269 per US dollar). This value increased by 40.4% compared to 2020, which was only US$3.95 billion.

Indonesia's exports to Saudi Arabia in 2021 reached US$1.58 billion. However, Indonesia's imports from Saudi Arabia reached US$3.97 billion. As a result, Indonesia's trade balance experienced a deficit of US$2.38 billion or equivalent to Rp34 trillion.

Looking back, Indonesia has consistently experienced this trade deficit with Saudi Arabia for the past 28 years, as shown in the graph.

Indonesia's deepest trade deficit with Saudi Arabia reached US$4.7 billion in 2013. The large trade deficit is due to the significant import of oil.

Throughout the January-April 2022 period, the Indonesia-Saudi Arabia trade balance also experienced a deficit.

Here is a breakdown of Indonesia-Saudi Arabia trade during the January-April 2022 period:

* Total Trade: US$2,566.14 million
* Indonesian Exports: US$623.72 million
* Indonesian Imports: US$1,942.2 million
* Indonesian Trade Balance: minus US$1,318.69 million