Indonesia

Indonesia

The United States and Indonesia meet regularly under the auspices of the Trade and Investment Framework Agreement (TIFA), signed in 1996.  Under the TIFA, working groups meet regularly on agricultural and industrial products, investment, services, intellectual property rights, and efforts to combat illegal logging and associated trade.  The TIFA also provides a mechanism for public-private sector dialogue.

Key Events

On September 30-October 1, Assistant U.S. Trade Representative Barbara Weisel led a U.S. delegation to Indonesia for a two-day TIFA meeting.  The agenda included proposals for expanding bilateral engagement on trade and investment issues and efforts to address outstanding issues involving agricultural products, pharmaceuticals, new import licensing and product labeling regulations, intellectual property rights, logistics, and the investment regime.  Progress was made on several issues, but many remain outstanding and discussions on those issues will continue.

On July 27-28, Deputy United States Trade Representative Demetrios Marantis held meetings with Indonesian government officials including Deputy Trade Minister Siregar, Health Minister Endang, and Deputy Agriculture Minister Krisnamurthi and private sector representatives on ways to resolve outstanding bilateral trade issues and explore new approaches for deepening U.S.-Indonesia trade and investment ties.

On July 23-24, the United States and Indonesia co-convened the second meeting of the Asia-Pacific Regional Dialogue to Promote Trade in Legally Harvested Forest Products, which brought together a large group of countries – including Australia, Cambodia, China, Japan, Laos, Malaysia, Papua New Guinea, New Zealand, Philippines, Singapore, the Solomon Islands, Thailand, and Vietnam – to exchange information and explore collaborative approaches to addressing the challenges associated with promoting legal trade and combating illegal trade in forest products. 

On February 7-8, Deputy United States Trade Representative Marantis held meetings on trade, investment, and environmental issues with senior Indonesian officials including Trade Minister Pangestu, Chairman Wirjawan of Indonesia’s Investment Board (BKPM), Health Minister Endang, and Forestry Minister Hasan.

U.S.-Indonesia Trade Facts

U.S. goods and services trade with Indonesia totaled $20 billion in 2009 (latest data available for goods and services trade combined). Exports totaled $6.5 billion; Imports totaled $13 billion. The U.S. goods and services trade deficit with Indonesia was $7 billion in 2009.

Indonesia is currently our 28th largest goods trading partner with $23.4 billion in total (two ways) goods trade during 2010. Goods exports totaled $6.9 billion; Goods imports totaled $16.5 billion. The U.S. goods trade deficit with Indonesia was $9.5 billion in 2010.

Trade in services with Indonesia (exports and imports) totaled $1.8 billion in 2009 (latest data available for services trade). Services exports were $1.4 billion; Services imports were $425 million. The U.S. services trade surplus with Indonesia was $981 million in 2009.

Exports

Indonesia was the United States' 32nd largest goods export market in 2010.

U.S. goods exports to Indonesia in 2010 were $6.9 billion, up 35.9% ($1.8 billion) from 2009, and up 147% from 1994 (the year prior to Uruguay Round).

The top export categories (2-digit HS) in 2010 were: Aircraft ($1.7 billion), Miscellaneous Grain, Seed, Fruit (primarily soybeans) ($827 million), Machinery ($678 million), Food Waste and Animal Feed ($425 million), and Electrical Machinery ($307 million).

U.S. exports of agricultural products to Indonesia totaled $2.2 billion in 2010, the 8th largest U.S. Ag export market. Leading categories include: soybeans ($806 million), cotton ($294 million), feeds and fodders (excluding pet food) ($267 million), dairy products ($160 million), and wheat ($130 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Indonesia were $1.4 billion in 2009 (latest data available), 11.7% ($187 million) less than 2008 but 61% greater than 1994 levels. Other private services category (mostly business, professional, and technical services) accounted for most of the U.S. exports in 2009.

Imports

Indonesia was the United States' 24th largest supplier of goods imports in 2010.

U.S. goods imports from Indonesia totaled $16.5 billion in 2010, up 27.3% ($3.5 billion) from 2009, and up 153% over the last 16 years.

The five largest import categories in 2010 were: Knit Apparel ($2.5 billion), Rubber ($2.2 billion), Woven Apparel ($1.9 billion), Electrical Machinery ($1.8 billion), and Mineral Fuel (oil) ($1.1 billion).

U.S. imports of agricultural products from Indonesia totaled $2.9 billion in 2010, the 6th largest supplier of Ag imports. Leading categories include: rubber and allied products ($1.7 billion), cocoa beans ($324 million), coffee (unroasted) ($236 million), spices ($146 million), and cocoa paste and cocoa powder ($123 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $425 million in 2009 (latest data available), down 18.7% ($98 million) from 2008 and down 4.0% from 1994 levels. Travel and the other Private Services (business, professional, and technical services) category accounted for most of the U.S. services imports from Indonesia.

 Trade Balance

The U.S. goods trade deficit with Indonesia was $9.5 billion in 2010, a 21.7% increase ($1.7 billion) over 2009.

The United States has a services trade surplus of $981 million with Indonesia in 2009 (latest data available).

Investment

U.S. foreign direct investment (FDI) in Indonesia (stock) was $16.0 billion in 2009 (latest data available), 1.7% decrease from 2008.

U.S. FDI in Indonesia is primarily concentrated in the nonbank holding companies and mining sectors.

Indonesia FDI in the United States (stock) was $256 million in 2009 (latest data available), up 175.3% from 2008.

Sales of services in Indonesia by majority U.S.-owned affiliates were $2.4 billion in 2008 (latest data available), while sales of services in the United States by majority Indonesia-owned firms were $69 million.

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.