Indonesia Country Profile 2025: Economy, Trade, and Investment

Introduction

Indonesia is the world’s largest archipelago and the biggest economy in Southeast Asia. With a population of over 277 million people, it is also the world’s fourth most populous country. Known for its diversity and strategic location, Indonesia, the country, plays a central role in regional and global trade. In this Indonesia country profile, we highlight Indonesia’s demographics, economy, trade flows, and investment climate.

For a deeper analysis, you can download the Full & Free Indonesia Country Profile 2025 at the end of this page.

Key Facts About Indonesia Country

Before delving deeper into the Indonesian economy and trade, here are some key facts that define Indonesia’s country profile.

As a result, Indonesia country facts show why it is often seen as a rising global power.

Economy of Indonesia 2025

The Indonesia economy is classified as lower-middle income and newly industrialized. It is also a member of the G20. In 2022, Indonesia’s GDP per capita was US$4,798, with steady growth expected in the years ahead.

Growth is projected at 4.8% in 2025 and 5.0% in 2026, reflecting the country’s recovery and resilience. Inflation stood at 4.2% in 2022 but is forecast to remain stable.

Therefore, Indonesia’s growing economy offers opportunities in manufacturing, energy, and services. With its large domestic market, the country remains attractive for both exporters and investors.

Trade in Indonesia

Indonesia’s trade continues to expand, supported by its diverse resource base and manufacturing strength. The following figures highlight the country’s main exports, imports, and key partners.

Exports

In 2022, exports totaled US$291.6 billion. The top categories included:

• Mineral fuels and oil – US$71 billion (24.3%).
• Animal and vegetable oils (mainly palm oil) – US$35.2 billion (12.1%).
• Iron and steel – US$27.8 billion (9.5%).
• Electrical machinery – US$14.6 billion (5%).
• Vehicles – US$11 billion (3.8%).

These figures confirm Indonesia’s position as one of the major exporters in Southeast Asia. It is also a significant furniture manufacturer exporter, and a leading Indonesian fruit exporter of mangoes, bananas, and pineapples.

Imports

Imports reached US$237.5 billion in 2022, with machinery, electrical equipment, fuel, plastics, and chemicals leading the list.

In addition, exports and imports in Indonesia show a positive trade balance of US$54.5 billion in 2022.

Trade Partners of Indonesia

• Top export markets: China (23.3%), ASEAN (19.1%), United States (11.8%), Japan (8.1%), EU (7.7%)
• Top import partners: China (32.7%), ASEAN (17.2%), Japan (8.6%), EU (6.4%), United States (5.2%)

As a result, China remains Indonesia’s most important trade partner for both exports and imports.

Foreign Direct Investment in Indonesia

Foreign direct investment in Indonesia has grown strongly in recent years. Here is an overview of inflows, major contributors, and the sectors attracting capital.

Foreign direct investment (FDI) in Indonesia reached US$43 billion in 2022, the highest in the country’s history. This represented a 44% increase compared to 2021. Also, the main contributors were:

• Singapore – US$13.3 billion.
• China – US$8.2 billion.
• Hong Kong – US$5.5 billion.
• Japan – US$3.6 billion.
• Malaysia – US$3.3 billion.

Most FDI went into metal processing, mining, and manufacturing. Meanwhile, the government expects total investment to reach US$92 billion in 2023 and US$108 billion in 2024, combining both foreign and domestic inflows.

The Indonesia Investment Authority (INA) manages sovereign wealth and promotes priority sectors. Alongside it, the Indonesian Investment Coordinating Board (BKPM) supports foreign investors.

Therefore, investing in Indonesia offers long-term opportunities, especially in renewable energy, digital services, and high-value manufacturing.

Let’s download the Full & Free [Indonesia Country Profile 2025 PDF] to explore in-depth insights on demographics, trade flows, investment trends, and government incentives.

Click on the image to save the file, Indonesia country profile 2025. (Source: Source of Asia)

Look Ahead

Indonesia is a diverse and growing economy with strong potential. It has a large consumer base, rich natural resources, and an expanding manufacturing sector. At the same time, it is one of the world’s top exporters of palm oil, coal, and rubber, while also growing its role in electronics and services.

Therefore, Source of Asia (SOA) is here to help you penetrate Indonesia with:

• Sourcing and supply chain management.
• Compliance and regulatory guidance.
• Market intelligence and go-to-market strategies.
• Local partner identification and business networking.

Connect with SOA today to navigate ASEAN with confidence!