Exploring Indonesia’s Economic Growth and Trade Dynamics

Rowena Lo Featured, News

On February 14th, 2024, Indonesians will head to the polls to elect their next president as President Joko Widodo completes his two-term tenure. Under his leadership, Indonesia has emerged as a success story in Southeast Asia. President Widodo’s policies, including export bans that compelled companies to refine resources like nickel domestically, have propelled the nation up the global value chain. This strategy has significantly boosted investments, reaching a staggering $47 billion last year, nearly double the figure from when he assumed office.

Indonesia now boasts the world’s largest reserves of nickel, a crucial material for various industries such as electric vehicles and solar panels, essential for the global transition towards green energy. Additionally, it is the largest palm oil producer, a major exporter of coal, and a significant contributor to the pulp-for-paper industry. Given its economic prowess, Indonesia holds immense potential for expanding trade relations, particularly with countries like Canada and the United States, ranking 19th and 23rd respectively in its trading partnerships.

The nation’s key ports, including the Port of Jakarta in Java (Tanjung Priok), Surabaya (Tanjung Perak), and Semarang (Tanjung Emas), play pivotal roles in facilitating trade. Presently, no direct shipping services connect Indonesia to North America, resulting in transit times of approximately 35 to 40 days, depending on the North American port of discharge. Meanwhile, Soekarno-Hatta International Airport, Indonesia’s largest airport, serves the bustling Jakarta metropolitan area and the island of Java.

For further information regarding shipping to and from Indonesia, interested parties can contact our Canaan Sales team. They stand ready to coordinate with our partner offices in Indonesia, ensuring smooth and efficient shipping operations.