Economy

Indonesia And Vietnam Drive Export Growth With New Strategies

Rising export figures, targeted government programs, and innovative market approaches are helping Indonesia and Vietnam strengthen their economies despite global uncertainties.

6 min read

As global trade weathers a storm of uncertainty and shifting priorities, Southeast Asia’s export powerhouses—Indonesia and Vietnam—are charting bold new paths to keep their economies thriving. Recent data and government initiatives reveal how both nations are tackling challenges and seizing opportunities, from boosting natural resource exports to empowering local communities and tapping into unique international markets.

According to Indonesia’s Central Bureau of Statistics, Indonesia’s non-oil and gas exports soared to US$244.75 billion between January and November 2025, marking a 7.07% increase from the previous year. This remarkable growth, published on January 24, 2026, underscores the country’s resilience and adaptability amid global economic headwinds. The backbone of these exports? A dynamic mix of natural resource-based commodities and manufactured products.

The biggest slice of the pie comes from animal and vegetable fats and oils—primarily palm oil and its derivatives—which contributed US$30.57 billion, or 12.49% of total non-oil and gas exports. Mineral fuels followed closely, with a contribution of 11.77% (US$28.81 billion), reflecting Indonesia’s enduring role in the global energy sector. Iron and steel exports brought in US$25.57 billion, accounting for 10.45% and showcasing the country’s growing industrial capacity. Rounding out the top five were electrical machinery and equipment (US$17.55 billion, 7.17%) and vehicles and parts (US$11.14 billion, 4.55%), highlighting the rise of Indonesia’s manufacturing sector on the world stage.

But Indonesia’s export ambitions aren’t confined to raw materials and heavy industry. In a bid to create more inclusive growth, government initiatives are reaching all the way to the country’s coastal villages. On January 28, 2026, the Deputy Regent of Bengkalis, H. Bagus Santoso, inaugurated the second phase of the Merah Putih Fishermen Village development program at Pantai Madani in Desa Pambang Pesisir. This priority project—spearheaded by President Prabowo Subianto’s administration and the Ministry of Marine Affairs and Fisheries—aims to transform traditional fishing communities into modern, productive, and integrated hubs.

"This is an important and historic moment for us, as tangible proof of the government’s presence in improving the welfare of coastal communities, especially fishermen who have long been synonymous with poverty due to limited access to infrastructure, technology, and markets," Bagus Santoso said at the event, as cited by local government sources. The program includes the construction of fishermen housing, docks, ship docking facilities, workshops, ice factories, and fuel stations—all designed to boost productivity and competitiveness. But the vision goes beyond bricks and mortar. The Deputy Regent emphasized that the development is also about building a productive, healthy, and sustainable coastal area, strengthening the blue economy, empowering independent fishermen, and creating a secure environment for future generations.

The Merah Putih Fishermen Village is the first of its kind in Riau Province and is seen as a model for integrated coastal development across Indonesia. Bagus Santoso called on all stakeholders—from village officials and community leaders to the fishermen themselves—to embrace the spirit of collaboration and ensure the program delivers real, long-lasting benefits. "The success of this development is not determined by the government alone, but also requires the active support and participation of all elements of society," he noted, urging professionalism and adherence to quality standards in the construction process.

Meanwhile, Indonesia is also eyeing new frontiers in export markets that blend economic strategy with cultural diplomacy. On January 27, 2026, the Ministry of Hajj and Umrah announced a major push to export Indonesian spices and ready-to-eat foods for the 2026 Hajj season. With an operational budget of Rp18.2 trillion for the pilgrimage, the government sees a golden opportunity to insert local products into the supply chain for Indonesian pilgrims in Saudi Arabia.

Jaenal Effendi, Director General for the Development of the Hajj and Umrah Economic Ecosystem, explained the rationale: "Even Thailand, the Philippines, Australia, and Malaysia have benefited from this. The hope is that in the future, some of these opportunities will flow to Indonesian communities through MSMEs that we give a chance to export to Saudi Arabia for the Hajj." At least 22 types of Indonesian spices are ready to be shipped, and the demand for ready-to-eat meals is projected at 3.9 million packages for the peak Hajj period in Arafah, Muzdalifah, and Mina. Ten companies each in the spice and ready-to-eat food sectors have undergone rigorous testing and secured certification from the Saudi Food and Drug Authority (SFDA), ensuring quality and safety for the pilgrims. The initiative is expected to empower micro, small, and medium enterprises (MSMEs), preserve the authentic flavors of Indonesia for pilgrims abroad, and keep a portion of the massive Hajj budget circulating within the national economy.

Turning to Vietnam, similar stories of strategic adaptation and resilience are unfolding. In Phu Tho province, more than 900 businesses are active in import and export, and in 2025, the province’s export turnover is estimated at nearly US$40 billion—placing it among Vietnam’s top five export regions. According to baophutho.vn, the provincial government has worked hard to control inflation, stabilize the macroeconomy, and flexibly manage fiscal and monetary policies, creating a business-friendly environment despite the turbulence of global markets.

Phu Tho has also made big strides in trade promotion, connecting domestic and international supply chains, and providing businesses with up-to-date market information and trade regulations. Companies like Phu Dat Vietnam Co., Ltd. have specialized in export packaging, churning out about 7,000 tons annually for customers in Europe, Japan, and the US. Nguyen Thi Lan Huong, Deputy Director of Phu Dat Vietnam, explained, "All our export markets have high standards for product quality and origin. To meet these requirements, we focus on investing in coating technology and strictly controlling the entire production process, from raw materials to finished products. Improving labor productivity and product quality helps us maintain stable export orders and creates conditions for future expansion."

Notably, Phu Tho’s export structure is shifting toward more processed and manufactured goods—like electronic components, mechanical parts, plastics, processed wood, electric cables, metals, garments, tea, and agricultural products—reducing reliance on raw materials and increasing value added. The province is leveraging free trade agreements and digital transformation, expanding into new and emerging markets, and supporting businesses through training, consulting, and practical trade promotion. As Hoang Xuan Phu, Deputy Director of the Department of Industry and Trade, put it, "We will continue to support businesses through training, consultations, partner networks, and assistance in resolving emerging issues. At the same time, we will strengthen trade promotion activities, focusing on providing information and market forecasts to help businesses proactively develop appropriate production and business plans."

Across Indonesia and Vietnam, the export engine is being tuned for the future. Whether it’s palm oil, high-tech machinery, traditional spices, or export packaging, both countries are demonstrating that innovation, community engagement, and smart policy can keep them competitive—even when the world economy looks anything but predictable.

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