Indonesia Is the Largest Exporter of Iron to China

Indonesia recorded exports to China totaling US$31.78 billion as of December 2020. This figure represents a 13.64% increase compared to the previous year's exports, which were recorded at US$27.96 billion.

Indonesia's trade record with China shows an upward trend in exports over the past 10 years. 2020 marked a historical record with the highest export value ever recorded.

Of the 97 products (two-digit HS codes) exported to China, 80 products were worth more than one billion dollars. Furthermore, according to Trademap data, 20 key Indonesian products are exported to China annually. This indicates a significant dependence on these export products. The remaining majority of exported products, totaling 70 products, are also exported to other countries.

The following is a list of the top five products exported by Indonesia to China, ordered from highest to lowest transaction value:

1. Iron and Steel

Indonesia exports a significant amount of iron and steel to China. In the Trademap classification, iron and steel fall under HS code 72. In 2020, Indonesia exported US$7.53 billion worth of iron and steel. This represents an increase compared to the previous period, which recorded US$3.1 billion.

2. Mineral fuels, mineral oils and products of their distillation

Indonesia's second-largest export to China is mineral fuels, mineral oils and products of their distillation. The export value in 2020 was US$7.04 billion, lower than the previous period's US$8.29 billion.

3. Vegetable fats and oils and their cleavage products

Indonesia also exports a large quantity of vegetable fats and oils and their cleavage products to China, with a value of US$3.57 billion in 2020. This is slightly lower than the previous period's US$3.64 billion. Besides China, Indonesia also relies on exports of vegetable fats and oils and their cleavage products to India, Pakistan, Malaysia, and the United States. In addition to these major countries, Indonesia exports this product to 155 other countries.

4. Wood pulp or other cellulose fibers

Indonesia exports a significant amount of wood pulp or other cellulose fibers to China, with a value of US$2.04 billion. This represents an increase compared to the previous period's US$2.02 billion. Besides China, Indonesia also relies on exports of wood pulp or other cellulose fibers to South Korea, India, Bangladesh, and the United Arab Emirates. In addition to these major countries, Indonesia exports this product to 28 other countries.

5. Ores, slag and ash

Exports of ores, slag, and ash to China are currently the largest. Indonesia exported US$1.46 billion worth of these products to China. Other major export destinations for ores, slag, and ash include Japan, South Korea, India, and Germany.