Indonesia improved its ranking owing to a 10.1-percent increase in its exports to China to reach US$37.4 billion last year.
"We still have to struggle and work hard to increase the exports of value-added products to China, so we can improve our achievement and performance in 2021," Indonesian Ambassador to China Djauhari Oratmangun told ANTARA in Beijing on Thursday.
Last year, Indonesia's exports to China were below those of Vietnam, at US$69.5 billion; Malaysia, US $66.7 billion; and Thailand, US$43.billion.
Quoting data from the General Administration of Customs of the People's Republic of China (GACC), the ambassador remarked that the China-Indonesia trade was valued at US$78.5 billion last year, with Indonesia's imports from China reaching US$41 billion, down 10.1 percent as compared to a year earlier.
As such, Indonesia succeeded in narrowing its trade deficit with China by up to 68.9 percent in 2020.
In 2019, Indonesia had recorded a deficit of US$11.7 billion in its trade with China. The deficit fell to only US$3.6 billion in 2020.
Iron and steel, swallow's nest, paper and paper products, coffee, tea, cashew nut, and spices were among Indonesia’s key commodities whose exports to China rose significantly.
The ambassador further noted that China's investment in Indonesia increased to US$4.8 billion, last year, thereby making it the second-largest foreign investor in Indonesia next to Singapore, with US$9.3 billion.
China's investment in Indonesia excluded the US$3.5-billion investment by Hong Kong that ranked third.
"Several large Chinese investors have expressed their investment commitment in the renewable energy sector. This will play an important role for Indonesia in contributing to the development of the global electric car industry," he stated.
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