Bambang Ismoyo, Heru Andriyanto, Jakarta – Indonesia's trade deficit with China more than doubled in the first four months of 2025, but Trade Minister Budi Santoso has dismissed suggestions that US tariffs on Chinese goods are driving Beijing to reroute exports to Southeast Asia.
According to data from Statistics Indonesia (BPS), the country recorded a $6.3 billion trade deficit with China from January to April 2025, compared to $3 billion during the same period last year. Imports from China surged 22.4 percent year-on-year to $25.8 billion, while Indonesia's exports to China grew only 7 percent, reaching $18.9 billion.
Indonesia's imports from China were largely composed of mechanical machinery, electrical equipment, and vehicles and their parts.
Responding to media questions, Minister Budi said trade balances between Indonesia and China tend to fluctuate over time and cautioned against drawing hasty conclusions.
"Our exports to China are among the highest. For example, last year we exported $60 billion worth of goods to China, while imports totaled $70 billion," Budi said in Jakarta on Wednesday.
He argued that there is no evidence indicating that Chinese exports intended for the US market are being redirected to Indonesia in response to recent tariff hikes by Washington.
"Export redirection or transshipment can be tracked through certificates of origin. So far, there's been no sign of such a shift," the minister said.
Budi acknowledged that Indonesia's overall export performance declined in March and April, which he attributed to disruptions caused by the extended Eid al-Fitr holidays. He added that the current global trade environment, including US protectionist measures, has made many Indonesian exporters more cautious as they await greater market certainty.
He also noted that Indonesia isn't alone in facing these challenges. At a recent ASEAN trade ministers' meeting in Kuala Lumpur, countries like Malaysia, the Philippines, and Vietnam also reported shrinking trade surpluses, indicating a broader regional trend.