India Indonesia Trade
Indonesia is the second largest trading destination for India in the ASEAN region.
Introduction
India and Indonesia are connected through centuries-old civilisational interactions that have shaped enduring cultural and economic linkages. Ideas, belief systems and artistic traditions from the Indian subcontinent found resonance across the Indonesian archipelago, influencing local heritage, literature and performance traditions. Today, these historical ties have evolved into a strong India Indonesia economic partnership, supported by expanding India Indonesia trade, investment and strategic cooperation. Growing India exports to Indonesia, increasing Indonesia imports from India, and stronger bilateral trade between India and Indonesia continue to reinforce India Indonesia trade relations, creating new trade opportunities between India and Indonesia.
India-Indonesia Trade
- The bilateral trade between India and Indonesia stood at US$ 24.783 billion in FY26.
- Indonesia stands at the 37th position in FDI equity inflows into India with a cumulative FDI amount of Rs. 3,261.69 crore (US$ 669.14 million) during April 2000-March 2026.
Major exports from India to Indonesia
- India’s export to Indonesia stood at US$ 4.49 billion in FY26.
- India exported 4,435 commodities to Indonesia in FY26.
- Major exported items from India to Indonesia include Engineering Goods (US$ 1.61 billion), followed by Organic and Inorganic Chemicals (US$ 511.99 million), Meat, Dairy and Poultry Products (US$ 336.48 million), Drugs and Pharmaceuticals (US$ 256.42 million), Petroleum Products (US$ 228.99 million), Oil Seeds (US$ 192.60 million), Mica, Coal and Other Ores, Minerals Including Process (US$ 165.44 million), Tobacco (US$ 145.08 million), Spices (US$ 120.33 million), and Electronic Goods (US$ 113.48 million) in FY26.
Major imports by India from Indonesia
- India’s import from Indonesia stood at US$ 20.3 billion in FY26.
- India imported 2,383 commodities from Indonesia in FY26.
- Major items imported by India from Indonesia include Coal, Coke and Briquettes, etc. (US$ 6.59 billion), followed by Vegetable Oil (US$ 3.87 billion), Iron and Steel (US$ 1.71 billion), Organic and Inorganic Chemicals (US$ 1.26 billion), Metalliferous Ores and Other Minerals (US$ 847.11 million), Electronic Goods (US$ 835.47 million), Chemical Material and Products (US$ 541.59 million), Non-Ferrous Metals (US$ 438.11 million), and Wood and Wood Products (US$ 391.76 million) in FY26.
Economic Relations and Investments
- In July 2026, India and Indonesia expanded cooperation in healthcare, pharmaceuticals, agriculture, food security and energy security through new agreements on medical products regulation, health workforce development and collaboration in conventional and renewable energy, including LNG, green hydrogen, bioenergy and solar energy. These initiatives are expected to strengthen bilateral trade, investment and sustainable economic growth.
- India and Indonesia have witnessed sustained expansion in economic engagement, with bilateral trade increasing from US$ 4.30 billion in 2005–06 to US$ 38.84 billion in 2022–23. Alongside growing trade and investment, both countries continue to strengthen connectivity, business linkages and commercial cooperation under the Comprehensive Strategic Partnership, creating long-term opportunities for bilateral trade and investment.
- The 10th edition of the India–Indonesia Joint Special Forces Exercise GARUDA SHAKTI commenced at the Special Forces Training School, Bakloh, Himachal Pradesh, conducted from December 3 to 12, 2025. The exercise involves troops from India’s Parachute Regiment (Special Forces) and the Indonesian Special Forces, intending to enhance mutual understanding, cooperation, and interoperability.
- Raksha Mantri Mr. Rajnath Singh and Indonesian Defence Minister Mr. Sjafrie Sjamsoeddin co-chaired the third India–Indonesia Defence Ministers’ Dialogue in New Delhi on November 27, 2025, reaffirming the strength of the Comprehensive Strategic Partnership and advancing bilateral defence cooperation. The ministers underscored shared commitment to a free, open and stable Indo-Pacific, enhanced maritime security, cyber resilience and multilateral cooperation, while reviewing progress in joint military exercises and defence industry collaboration.
Recent Trends & developments
- In July 2026, Prime Minister Shri Narendra Modi and Indonesian President Mr. Prabowo Subianto reaffirmed their commitment to strengthening the India–Indonesia Comprehensive Strategic Partnership through a package of landmark agreements covering trade, investment, digital technologies, artificial intelligence, space, education and people-to-people exchanges. The leaders also agreed to deepen collaboration in Digital Public Infrastructure, telecommunications, startup ecosystems and innovation, creating new opportunities for bilateral trade and long-term economic growth.
- India and Indonesia agreed to strengthen strategic coordination in multilateral and regional forums, including the United Nations, BRICS, G20, ASEAN and the Indian Ocean Rim Association (IORA). Both countries reaffirmed their commitment to a free, open and rules-based Indo-Pacific, supported reforms of global governance and the multilateral trading system, and pledged closer cooperation to strengthen supply chain resilience and promote sustainable economic development.
- In FY27, India and Indonesia strengthened collaboration in defence manufacturing by advancing cooperation on the BrahMos and ASTRA missile systems, while expanding partnerships in critical minerals, steel production, agriculture and maritime infrastructure. The initiatives are expected to enhance industrial cooperation and strengthen regional supply chains.
- In July 2026, India and Indonesia expanded cooperation in defence, maritime and cyber security, enhancing collaboration between defence industries, coast guards and maritime agencies, while reaffirming their commitment to a free, open and rules-based Indo-Pacific that supports secure maritime trade and regional stability.
- In June 2025, IndiGo and Garuda Indonesia sign codeshare agreement to expand India and Indonesia connectivity.
- In November 2023, Raksha Mantri Mr. Rajnath Singh met with Indonesian Defence Minister Mr. Prabowo Subianto during the 10th ASEAN Defence Ministers’ Meeting - Plus in Jakarta. Singh praised Indonesia's leadership in ASEAN and the organization of the event. The ministers discussed strengthening bilateral defence ties, particularly in the maritime sector, and reviewed ongoing training and exercises. They also explored collaboration in the defence industry and noted their co-chairing of the Expert Working Group (EWG) on Humanitarian Assistance and Disaster Relief (HADR) for 2021-2024.
- MoU between the Narcotics Control Bureau (NCB) of India and the National Narcotics Board of Indonesia on combating illicit trafficking in narcotic drugs, psychotropic substances, and their precursors was signed in the 7th Joint Commission Meeting (JCM) held in Delhi on June 17, 2022.
- MoU between National Sugar Institute, Kanpur, and Politeknic Perkebunan LPP, Yogyakarta was signed in the 7th Joint Commission Meeting (JCM) held in Delhi on June 17, 2022.
- In the defence sector, both countries have been working closely and organized Samudra Shakti, a bilateral maritime exercise, and Garuda Shakti, a joint military exercise, every year.
- India and Indonesia launched a new trade channel on July 16, 2023, to better combat global issues and significantly enhance bilateral cooperation between the two nations. The newly inked India-Indonesia Economic and Financial Dialogue will look at bilateral investment, financial services, and infrastructure development as its areas of cooperation.
- India and Indonesia are soon going to have real-time settlement and trading in local currencies, Senior Government Officials said on the sidelines of G20 Finance Minister Central Bank Governors’ (FMCBG) meeting under India’s presidency.
- India and Indonesia have jointly declared the commencement of the India–Indonesia Economic and Financial Dialogue (EFD Dialogue) in July 2023. The EFD Dialogue aims to enhance collaboration between the two nations, fostering a shared understanding of global issues. It pledges to provide a distinctive platform for mutual learning and policy coordination, thereby reinforcing the commitment to strengthen cooperation.
Conclusion
The India Indonesia economic partnership continues to strengthen through expanding India Indonesia trade, strategic cooperation and growing collaboration across defence, healthcare, digital technologies, energy, critical minerals and infrastructure. Rising India exports to Indonesia, increasing Indonesia imports from India, and stronger bilateral trade between India and Indonesia reflect the deepening India Indonesia trade relations between the two countries. With sustained cooperation in connectivity, innovation and regional supply chains, both nations are well positioned to unlock new trade opportunities between India and Indonesia and support long-term economic growth.
Contacts
- Embassy of India, Indonesia
Address: Gama Tower, 28th floor, Jl. HR. Rasuna Said Kav. C22,
Karet Kuningan, Setiabudi, Kota Jakarta Selatan, Jakarta 12940.
Telephone: +62 21 2522299,
Email:info.jakarta@mea.gov.in
Officials
Ambassador - Mr. Sandeep Chakravorty, Ambassador;
Email: amb.jakarta@mea.gov.in - Embassy of Indonesia, India
Address: 50-A Kautilya Marg, Chanakyapuri, New Delhi 110021
Phone: +91-11- 26118642-45
Email: newdelhi.kbri@kemlu.go.id
Officials
Ambassador - Ms. Ina Hagniningtyas Krisnamurthi
Deputy Chief of Mission - Mr. Yudho Sasongko
FAQS
Engineering Goods are the largest India exports to Indonesia, followed by Organic and Inorganic Chemicals, Meat, Dairy and Poultry Products, Drugs and Pharmaceuticals, and Petroleum Products in FY26.
India Indonesia trade has continued to expand, with bilateral trade reaching US$ 24.78 billion in FY26, supported by diversified merchandise trade and stronger economic cooperation.
Engineering, chemicals, pharmaceuticals, energy, agriculture and food products are among the key sectors driving bilateral trade between India and Indonesia.
Indonesia offers significant opportunities for Indian exporters through growing demand for engineering products, pharmaceuticals, chemicals and agricultural products, supported by expanding economic cooperation.
The highest-value India exports to Indonesia include Engineering Goods, Organic and Inorganic Chemicals, Meat, Dairy and Poultry Products, Petroleum Products and Oil Seeds.
The India–Indonesia Comprehensive Strategic Partnership promotes investment, connectivity and industrial collaboration through initiatives in healthcare, energy, digital technologies and financial cooperation.
Emerging opportunities are expected in pharmaceuticals, healthcare, renewable energy, critical minerals, digital technologies and engineering products as bilateral cooperation expands.
The growth of India Indonesia trade is supported by stronger trade agreements, improved connectivity, resilient supply chains and cooperation in technology, infrastructure and investment.
Indian businesses can strengthen their presence by leveraging the India–Indonesia Economic and Financial Dialogue, improved connectivity and expanding cooperation in strategic sectors such as manufacturing, healthcare and digital technologies.
High-value manufacturing, pharmaceuticals, clean energy technologies, agricultural products and engineering goods are well positioned to benefit from the growing India–Indonesia economic partnership.
Partners
