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Indonesia Sees Growth in Manufacturing and Agricultural Exports, Decline in Mining Sector

by Giezel Garcia
03/20/2025
in Import/Export Statistics

Indonesia’s exports from the manufacturing and agriculture sectors experienced significant growth in February, driven by increases in crude palm oil (CPO) and machinery shipments. However, the mining sector recorded a sharp decline, according to data from Statistics Indonesia (BPS).

BPS head Amalia Adininggar Widyasanti stated in a press briefing that manufacturing sector exports rose to $17.6 billion in February, up from $13.62 billion in the same period last year. This marks a 29.5% year-on-year (y-o-y) increase and a 3.1% rise compared to January’s $17.1 billion.

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Key contributors to this growth included palm oil products, machinery, and jewelry, which saw y-o-y increases of 84.1%, 92%, and 113%, respectively. CPO and its derivatives accounted for 11% of total exports in February, reaching $2.27 billion—nearly double the $1.2 billion recorded in February 2024 and a 58% increase from $1.44 billion in January 2025.

According to BPS, the higher export value of CPO was driven by an increase in shipment volumes, even though global prices slightly declined from $1,134 per tonne in January to $1,101 per tonne in February. CPO prices have been trending upward since November, partially due to supply constraints caused by lower output from Malaysia following severe flooding, which affected harvesting and production.

Malaysia, the world’s second-largest CPO exporter after Indonesia, faced significant flooding in November and January, impacting major palm oil-producing regions such as Johor, Sarawak, and Sabah.

Indonesia’s agriculture sector also posted strong export growth, increasing by 52% y-o-y, though specific contributing factors were not detailed.

Meanwhile, the mining sector experienced a 35% annual decline in export value, attributed to a drop in coal prices from $78 per tonne in February 2024 to $67.6 per tonne last month. Export volumes also declined, particularly to India, Indonesia’s largest coal export destination. India reduced its coal imports by 2.5 million tonnes in the first two months of 2025 as part of its strategy to boost domestic production and achieve greater energy self-sufficiency.

The data highlights shifting trends in Indonesia’s trade dynamics, with strong performances in manufacturing and agriculture offset by challenges in the mining sector.

Get the latest supply chain report news at The Supply Chain Report. Learn more about international trade with tools from ADAMftd.com.

#IndonesiaExports #ManufacturingGrowth #AgriculturalExports #MiningDecline #TradeTrends #EconomicShift #IndonesiaEconomy

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