Indonesia

The United States continues to meet with Indonesian officials at all levels on a regular basis in an effort to resolve a range of outstanding trade and investment concerns and improve the bilateral trade relationship.

In May 2009, the United States hosted a meeting under our Trade and Investment Framework Agreement to address the growing number of bilateral issues related to investment, intellectual property rights, pharmaceuticals, agriculture and industrial products, services, and illegal logging and associated trade.

In September 2009, the United States and Indonesia held a meeting of our TIFA Working Group on Illegal Logging and Associated Trade. The United States and Indonesia also co-hosted the first Asia-Pacific Regional Dialogue to Promote Trade in Legally Harvested Forest Products. Other countries participating in the dialogue included Australia, Brunei, Malaysia, Papua New Guinea, Singapore, Solomon Islands, and Vietnam. Participants agreed to hold a second meeting in early 2010.

The next full interagency TIFA meeting will take place in early 2010. To assist with our preparations, the United States welcomes feedback and input from U.S. stakeholders, including small- and medium-sized enterprises, on their trade and investment experiences with Indonesia. Based on the information received, we will continue to make bilateral requests to Indonesia and pursue comments and questions in the relevant WTO committees.

Throughout 2009, the United States conducted exploratory discussions of a potential Bilateral Investment Treaty with Indonesia as well as discussions of an updated Investment Incentive Agreement.

U.S.-Indonesia Trade Facts

U.S. goods and services trade with Indonesia totaled $20.5 billion in 2007 (latest data available). Exports totaled $6 billion; Imports totaled $15 billion. The U.S. goods and services trade deficit with Indonesia was $9 billion in 2007.

Indonesia is currently our 30th largest goods trading partner with $21.4 billion in total (two ways) goods trade during 2008. Goods exports totaled $5.6 billion; Goods imports totaled $15.8 billion. The U.S. goods trade deficit with Indonesia was $10.2 billion in 2008.

Trade in services with Indonesia (exports and imports) totaled $2.0 billion in 2007. Services exports were $1.6 billion; Services imports were $444 million. The U.S. services trade surplus with Indonesia was $1.2 billion in 2007.

Exports

Indonesia was the United States' 38th largest goods export market in 2008.

U.S. goods exports to Indonesia in 2008 were $5.6 billion, up 33.3% ($1.4 billion) from 2007, and up 101% from 1994 (the year prior to Uruguay Round).

The top export categories (2-digit HS) in 2008 were: Machinery ($663 million), Miscellaneous Grain, Seed, Fruit (primarily soybeans) ($627 million), Aircraft ($541 million), Cotton, Yarn and Fabric ($456 million), and Cereals (wheat) ($380 million).

U.S. exports of agricultural products to Indonesia totaled $2.2 billion in 2008, the 7th largest U.S. Ag export market. Leading categories include: soybeans ($624 million), cotton ($455 million), wheat ($364 million), dairy products ($209 million), and feeds and fodders (excluding pet food) ($189 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Indonesia were $1.6 billion in 2007 (latest data available), 8.9% ($131 million) greater than 2006 and 83% ($728 million) greater than 1994 levels. Other private services category (mostly business, professional, and technical services) accounted for most of the U.S. exports in 2007.

Imports

Indonesia was the United States' 28th largest supplier of goods imports in 2008.

U.S. goods imports from Indonesia totaled $15.8 billion in 2008, up 10.5% ($1.5 billion) from 2007, and up 142% over the last 14 years.

The five largest import categories in 2008 were: Rubber ($2.0 billion), Woven Apparel ($2.0 billion), Knit Apparel ($2.0 billion), Electrical Machinery ($1.7 billion), and Mineral Fuel and Oil (crude) ($860 million).

U.S. imports of agricultural products from Indonesia totaled $2.8 billion in 2008, the 5th largest supplier of Ag imports. Leading categories include: rubber and allied products ($1.7 billion), tropical oils ($240 million), coffee (unroasted) ($239 million), cocoa paste and cocoa butter ($139 million), and spices ($131 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $444 million in 2007 (latest data available), up 14.1% ($55 million) from 2006 and up 0.2% ($1 million) from 1994 levels. Other Private Services (business, professional, and technical services) and the travel category accounted for most of the U.S. services imports from Indonesia.

Trade Balance

The U.S. goods trade deficit with Indonesia was $10.2 billion in 2008, a 0.9% increase ($88 million) over 2007.

The United States has a services trade surplus of $1.2 billion with Indonesia in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in Indonesia (stock) was $17.9 billion in 2008, a 1.3% increase from 2007.

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

Indonesia FDI in the United States (stock) was $129 million in 2008, up 3.2% from 2007.

Sales of services in Indonesia by majority U.S.-owned affiliates were $1.4 billion in 2006 (latest data available), while sales of services in the United States by majority Indonesia-owned firms were $73 million.

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