Indonesia's Economy
Indonesia and India
How Indonesia and India trade coal and palm oil, cooperate in ASEAN and G20, and share challenges as large, young democracies.
Indonesia and India are neighbours across the Andaman Sea.
Trade
- India imports coal and palm oil from Indonesia.
- Indonesia imports Indian refined petroleum, cars, sugar and beef.
- India has a trade deficit with Indonesia.
Historical ties
Ancient trade and culture: Hindu and Buddhist kingdoms like Majapahit and Srivijaya, and temples like Prambanan.
Diplomacy
- Both are G20 members; Indonesia hosted in 2022, India in 2023.
- India’s Act East Policy engages ASEAN.
- Indonesia’s President Prabowo was chief guest at India’s Republic Day in 2025.
BRICS
Indonesia joined BRICS in January 2025.
Shared challenges
Both need manufacturing jobs for young populations and face infrastructure gaps.
The coal ship
A ship loads coal in Kalimantan bound for an Indian power plant, one of many making the trip each month.
Thinking Indonesia and India have little in common
They share history, trade and development challenges.
Key takeaways
- India imports coal and palm oil from Indonesia.
- Ancient ties include Hindu-Buddhist kingdoms.
- Both are G20 members; Indonesia joined BRICS in 2025.
- Both need jobs for young populations.
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