Indonesia's exports remained stable, growing 0.86% after President Trump's new tariffs. A number of countries supported the stability of Indonesia's export value, one of which was Malaysia. Exports to this neighboring country in August recorded a record high of USD $1,051.4 million (up 7.80%), driven by a surge in downstream commodities such as refined palm oil.
The total value of non-oil and gas exports reached USD 23,890.5 million, an increase of 0.33% from July and a growth of 6.68% compared to August the previous year. This growth occurred amidst global trade dynamics, including the impact of newly enacted tariff policies.
Despite a decline in exports to the United States, from US$3,100.3 million (July) to US$2,716.3 million (August) or a 12.39% drop, export performance to several other partner countries actually increased. Such as to China, Malaysia, Australia, and Italy.
Non-oil and gas exports to China jumped 16.03% (m-to-m). Exports to Malaysia also rose by 7.80% (m-to-m), reaching USD $1,051.4 million in August. This is the highest recorded figure so far this year. This increase underscores the importance of the ASEAN regional market, which as a whole is Indonesia's main non-oil and gas export destination with a share of 19.42%.
When viewed in more detail, the main commodities of oil and gas and non-oil and gas exports to Malaysia in July and August 2025 have changed. In August, leading commodities such as refined palm oil liquid fraction (HS code 15119037) saw a significant jump from US$59.63 million to US$135.89 million, making it the second leading export commodity, after coal. In addition, fuel oil (HS code 27101979) also surged to US$46.37 million, reflecting increased demand for energy.
Meanwhile, other commodities also showed strengthening, including industrial monocarboxylic fatty acids (HS 38231919) which rose from US$18.81 million to US$26.38 million, and flat-rolled stainless steel products (HS 72191300) which increased to US$31.92 million.
The presence of vehicle parts and processed agricultural products (such as Cocoa and Coffee) in the list completes the picture of Indonesia's diversified exports to Malaysia. Other major commodities such as coal (HS 27011900) remained the largest export although it slightly decreased in value from 158.49 million to 146.23 million in August. The increase in various processed and industrial products shows that trade relations with Malaysia are not only dependent on raw commodities.
The growth of Indonesia's exports to a number of countries including Malaysia demonstrates the resilience of the national economy amid global uncertainty following the Trump tariffs. Strengthening trade with regional and East Asian partners means success in diversifying export markets. The surge in the value of exports of specific commodities to Malaysia, especially downstream palm oil and industrial products, is a momentum that needs to be maintained through trade promotion and increasing the competitiveness of Indonesian products in the regional market.
