What Are Malaysia’s Main Import Products from Indonesia?
Although often involved in conflicts between countries, the economic relationship between Malaysia and Indonesia remains strong. In fact, Malaysia is Indonesia’s second-largest trading partner after China. However, what are Malaysia’s main imports from Indonesia?
Many of you may be quite curious about this. In this article, we will provide a detailed explanation to answer that question. Here is the full explanation just for you.
Trade Relations Between Indonesia and Malaysia
Before discussing Malaysia’s main imports, let’s first explore the history and trade relationship between these two developing countries.
Initially, trade between Indonesia and Malaysia was carried out through a barter system. However, as both countries developed, they began implementing tariff systems and trade agreements.
To this day, Malaysia remains one of Indonesia’s largest trading partners. In 2021, the total trade value between Indonesia and Malaysia reached US$18 billion.
What Are Malaysia’s Main Imports from Indonesia?
There are several products that serve as Malaysia’s main import commodities. Here is a summary of those commodities:
1. Coal
When discussing Malaysia’s main imports, coal is one of them.
As is well known, Malaysia has become a trading partner for Indonesia in various sectors, including the energy sector. Malaysia is one of the destination countries for Indonesia’s leading non-oil and gas export products, including coal.
In 2021, Malaysia imported 73.8% of its coal supply from Indonesia, with a purchase value of RM16.6 billion. Additionally, in 2022, Indonesia exported coal to Malaysia worth US$6.4 billion.
2. Mineral Fuels
Mineral fuels are another import commodity for Malaysia from Indonesia. Although there was a decline in export value in 2020, where Indonesia’s mineral fuel exports to Malaysia were only valued at US$4.6 billion, Malaysia remains one of the largest importers of mineral fuels from Indonesia.
3. Nickel
Indonesia still holds the title as the world’s largest nickel producer. According to data from the Central Statistics Agency (BPS), the export volume of Indonesia’s processed nickel products in 2022 reached 115.52 million kg.
The export value of Indonesian nickel in 2022 also increased compared to the previous period, reaching US$8.39 million. Malaysia is one of the export destination countries, importing 10.52 million kg of nickel valued at US$9 million.
4. Copper
In addition to nickel, Indonesia is also one of the Asian countries actively exporting copper. Based on data from the Central Statistics Agency (BPS), Indonesia’s copper ore exports saw a significant increase in 2020, doubling compared to the previous year.
Regarding Malaysia’s main import products, Malaysia is also one of the destination countries for this non-oil and gas mining commodity. In 2021, copper exports from Indonesia to Malaysia increased by 265.11%.
5. Iron and Steel
Another non-oil and gas commodity that is a popular import product in several countries, including Malaysia, is iron and steel. The latest data shows that exports of iron and steel to Malaysia increased by 65.89% by the end of 2021.
Types of steel commonly exported to Malaysia include HRC (Hot Rolled Coil), HRPO (Hot Rolled Pickled Oil), and HRP (Hot Rolled Plate).
6. Tea
Not many people know that tea is one of Malaysia’s import commodities from Indonesia. According to data from Data Indonesia, Malaysia was one of 62 export destination countries in 2021, with a value of US$1.70 million.
Tea is indeed one of Indonesia’s top commodities exported globally. Based on data from the Central Statistics Agency (BPS), Indonesia’s tea exports reached US$1.16 million with a volume of 42,653 tons in 2021.
What Commodities Does Malaysia Export to Indonesia?
Next, we will also discuss Malaysia’s export commodities to Indonesia. Based on data from various reliable sources, here are some of Indonesia’s favorite import commodities from Malaysia:
A. Machinery and Mechanical Equipment
One of Indonesia’s favorite import products from Malaysia is machinery and mechanical equipment. Included in the HS Code 84 category, imports of this commodity reached US$9.93 million. Besides Malaysia, Indonesia also imports machinery from Japan, Thailand, South Korea, and China.
B. Electrical Equipment
Another popular import commodity for Indonesia from Malaysia is electrical equipment. Indonesia actively imports electrical products from Malaysia.
In 2022, Indonesia imported electrical equipment worth US$5.92 million, an increase compared to the previous year, which was valued at US$8.72 million. In addition to Malaysia, Indonesia also frequently imports electronic goods from Japan, China, and South Korea.
C. Plastics
Indonesia also imports plastic raw materials from Malaysia. In 2022, plastic imports from Malaysia were valued at US$0.48 million. Indonesia also imports this commodity from China, Thailand, and Singapore.
D. Organic Chemicals
Indonesia regularly imports chemical materials from 75 countries, including Malaysia. Based on 2020 data, Indonesia imported organic chemicals from Malaysia worth US$2.12 million.
Other Asian countries exporting this commodity to Indonesia include China, Thailand, India, and Singapore.
Now You Know Malaysia’s Main Imports from Indonesia
That concludes our brief overview answering the question of Malaysia’s main imports from Indonesia. In summary, Malaysia’s imports from Indonesia are dominated by raw materials such as coal, nickel, copper, mineral fuels, and tea.
Just like Malaysia, Indonesia also frequently imports various commodities from Malaysia, such as plastics, chemicals, and machinery. To optimize your export-import business efforts, consider using export services like Star Express Indonesia.
Star Express Indonesia has over 20 years of experience in providing international shipping services from Indonesia via sea and air. They can guide you on the best ways to export goods from Indonesia to Malaysia.
For more information, visit the official Star Express Indonesia website. Hopefully, this article is useful and broadens your knowledge about the export-import world.
