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What chemicals are exported from China to Indonesia?

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Oil products and related products, the largest scale of China’s exports to the country of Indonesia According to Chinese customs statistics, the scale of China’s exports of gasoline, ethanol gasoline and component oils to Indonesia in 2022 exceeded 1 million tons, making it the largest exported chemical type. And oil additives and other related products, with an export scale of more than 340,000 tons, are the second largest export products. In addition, the export volume of marine fuel oil exceeds 270,000 tons, and other oil products and related products, the export scale is not large. According to relevant statistics, Indonesia has a crude oil processing capacity of 1.21 million barrels per day, with a total of six large refineries, as well as many small cottage refining facilities. The major refineries represented are Barongan Refinery, Praju Refinery, Tuban Refinery, etc. The very strong consumption of refined oil products in Indonesia has led to a continuous study to increase the scale of local refining since 2021, but as of now, no large refineries have been added. It should be noted in particular that Indonesia has many cottage refineries, also commonly known as clay refineries, located in Banten, Indonesia, through a simple and crude process of crude oil extraction to simple distillation, and the processing capacity of such refining facilities cannot be clearly counted.

Indonesia’s new large-scale refinery can not be put into operation in the short term, Indonesia still has a large oil supply gap, the gap mainly relies on the supplement of imported resources, of which China is an important source of supply.

  • According to Chinese customs statistics, China exported more than 280,000 tons of Yuanmin powder, 230,000 tons of methanol and 160,000 tons of sodium chloride to Indonesia in 2022, all of which are chemicals of larger scale. In addition, carbon black exported more than 170,000 tons, soda ash exported more than 100,000 tons, other chemicals export scale are less than 100,000 tons. Indonesia is the largest country in Southeast Asia, with thousands of islands. Due to its scattered territory and numerous volcanoes, Indonesia’s plantation industry is not large-scale, and is also affected by transportation, resulting in high transportation costs and no significant large-scale industry. Indonesia’s plantation industry is dominated by tropical fruits and rice, which does not have the advantage of scale, resulting in a low rate of refinement of its chemical industry chain and insufficient supporting of fertilizers and related products, which also forms the window of supply market for Chinese exports to Indonesia. In addition, basic chemical products such as Yuanming powder and methanol, which China exports to Indonesia, are designed to form a supply complement to the local supply and make up for the vacancies in the local chemical industry chain. For the future, Indonesia’s chemical industry is not its main local industry, nor is it the future direction of development, and there is still a gap in a short period of time. (3), China’s exports of resin and rubber products to Indonesia include polyester chips, PP powder, polyester staple fiber, polyethylene glycol, BOPET, PVC, etc. According to the customs statistics, among the resin, chemical fiber and rubber products exported by China to Indonesia in 2022, polyester chips exported more than 80,000 tons, polyester staple fiber exported more than 75,000 tons, PP powder exported more than 57,000 tons, polyester industrial yarn exported more than 46,000 tons, polyethylene glycol exported more than 40,000 tons, BOPP film exported more than 34,000 tons, PVC exported more than 15,000 tons. According to incomplete statistics, the overall scale of China’s exports to Indonesia of polymer products, including resins, chemical fibers and rubber and downstream products, exceeds 350,000 tons.

Due to the large scale of Indonesia’s oil refining industry, but the chemical industry chain is small, with ethylene production capacity of only 860,000 tons / year, propylene production capacity of 1.02 million tons / year. It is also due to the weak foundation of the chemical industry chain, resulting in its downstream resin and rubber products production capacity is limited, thus causing a large supply gap, but also for China to Indonesia’s exports of resin, chemical fiber and rubber products to provide a certain market space.

Indonesia’s chemical industry chain is weak, with few large-scale refining enterprises, but weak product standardization and many non-compliant and indigenous production and processing units, which leads to a poor supply of its products in the industry chain. However, this is also a prerequisite for China’s exports to Indonesia. It is expected that there will still be a large number of oil products and chemicals exported to Indonesia from China in the future, and Pingtou expects to focus on oil products and bulk chemicals.

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