EU-Indonesia to develop ties this year, so much so that the EU imports from Indonesia have surged by a value difference of about $3 billion. The EU is likely to import much higher than Indonesia’s import in the near time, as per the analysis of trade data of both countries.
The imports of the EU from Indonesia are relatively higher than the imports of Indonesia. This shows that both countries, especially the European Union, are moving towards the progression of the previous talks over the Comprehensive Economic Partnership Agreement (CEPA) from 2016.
EU-Indonesia Historical Trade
The first data shown below shows the yearly imports of the EU from Indonesia. 2017 shows the total value of imports amounting to $19.4 billion, followed by $20.2 billion in 2018 and $19.4 billion in 2019. The year 2020 and 2021 amounted to $17.8 billion and $22.5 billion respectively.
The below-shown import data represents the yearly import values of Indonesia accounted for in the trade with the EU. 2017 amounted to $11.4 billion, followed by 2018 amounting to $12.9 billion, 2019 and 2020 amounting to $11.4 and $10.1 billion respectively with $11 billion in 2021.
Looking at both datasets reveals the differences in the values of imports between the EU and Indonesia. While it is evident that the EU imports much higher than Indonesia’s imports, the values of imports registered by Indonesia show a significant range of amounts for imports.
Top Imports By Countries
The top imports of the EU from Indonesia in 2021 were—fats & oils ($3.6 billion), followed by footwear ($2.5 billion), electronics ($1.7 billion), chemical products ($1.6 billion), rubber ($1.2 billion), and other products as shown in the list below. See the data below to access the full list.
The top imports by Indonesia from the EU in 2021 were—industrial machinery ($2.60 million/$2.6 billion), followed by pharmaceuticals ($922.2 million), electronics ($838.4 million), optical & medical instruments ($607.7 million), organic chemicals ($501.2 million), and others.
A Year-on-year Comparison
From the represented datasets above, it is evident that the imports of the EU from Indonesia are relatively higher. The value of imports for the EU also grew exponentially larger than Indonesia’s since the value difference between the values of 2020 and 2021 in the EU was about $3 billion.
The imports in the first and second quarters of 2021 ($4.78 billion and $5.42 billion) summed up at $10.2 billion. On the other hand, the total value of imports for both quarters amounted to $13 billion, representing an increase of 28.03% with a difference of $2.8 billion.
EU-Indonesia Trade Relations
The trade relationship between the European Union and Indonesia has been unstable and relentlessly fluctuating. The issues between both countries have not helped any of the sides to initiate a better relationship to promote a smooth transition of trade between the two countries.
Most of the disputes between both countries have been reviewed by World Trade Organization (WTO) and will be discussed this year. The implementation of the EU’s cleaner energy transition implies that it will be connected with Indonesia, one of the big producers of lithium batteries.
The bilateral agreement between these two countries will enable more withstanding trade, paving the way for more trade deals, exchange of goods and services and free trade to strengthen the ties between both countries.