Indonesia and Malaysia
Neighborly relations, business activity and human ties connect Indonesia and Malaysia. Ambalat adds a maritime controversy with its own economic interests. In June 2025 the leaders discussed joint development while continuing to address legal questions.
Analysis reviewed: 2026-10-07 · Indicators updated: 2026-10-07Contacts between leaders
Joint declarations of 27 June 2025 document bilateral dialogue and practical cooperation matters.
Ambalat and joint development
The Indonesian president explained that the parties wanted to begin joint-development economic cooperation while addressing legal issues over Ambalat.
The June 2025 agenda
The meeting identifies a proposed economic path for a sensitive issue and shows continuing dialogue.
Bilateral indicators
Blank cells: data unavailable.
| Indicator | Value | Period |
|---|---|---|
| Goods trade | 24,224.04 M USD | 2025 · UN Comtrade / IDN |
| Goods: Indonesia to Malaysia | 13,099.7 M USD | 2025 · UN Comtrade / IDN |
| Goods: Malaysia to Indonesia | 11,124.34 M USD | 2025 · UN Comtrade / IDN |
| Services trade | ||
| Export share: Indonesia to Malaysia | 4.65 % | 2025 · UN Comtrade / IDN |
| Export share: Malaysia to Indonesia | ||
| Investment stock: Indonesia in Malaysia | ||
| Investment stock: Malaysia in Indonesia |
Definitions and sources
Trade adds both directions. Shares refer to the country’s total goods exports; investment is an accumulated stock, not an annual flow. Every figure retains the currency and period of its source. BEA positions are historical-cost estimates based on the immediate counterpart, not market values or investment by ultimate owner. ‘More than’ indicates a lower bound, not an exact amount. A recorded stock does not establish new activity or authorisation to operate under sanctions.
- Goods trade
- 2025 · UN Comtrade / IDN · Goods; full year; reporter IDN. Exports normally FOB and imports CIF according to the reporter's coverage. Mirror reports are not added together.
- Goods: Indonesia to Malaysia
- 2025 · UN Comtrade / IDN · Goods; full year; reporter IDN. Exports normally FOB and imports CIF according to the reporter's coverage. Mirror reports are not added together.
- Goods: Malaysia to Indonesia
- 2025 · UN Comtrade / IDN · Goods; full year; reporter IDN. Exports normally FOB and imports CIF according to the reporter's coverage. Mirror reports are not added together.
- Export share: Indonesia to Malaysia
- 2025 · UN Comtrade / IDN · Goods share: IDN exports to the partner / exports by the same reporting country to the world, in the same year.
Country comparison
Period and source beside each figure · est. = estimate by the stated institution.
Some annual indicators refer to different years. Check the period beside each value before comparing them.
| Indicator | Indonesia | Malaysia |
|---|---|---|
| Nominal GDP | 1.45 trillion USD2025 · World Bank | 472.19 billion USD2025 · WB |
| GDP per capita | 5,059.63 USD2025 · World Bank | 13,124.56 USD2025 · WB |
| GDP growth | 5.11 %2025 · World Bank | 5.17 %2025 · WB |
| Policy interest rate | ||
| Inflation · annual average | 1.91 %Annual average · 2025 · World Bank | 1.38 %Annual average · 2025 · WB |
| Inflation · latest year-on-year figure | 3.28 %Year-on-year · 2026-09 · BPS Indonesia | |
| Unemployment | 3.24 %ILO est.2025 · World Bank | 3.76 %ILO est.2025 · WB |
| Budget balance (% of GDP) | -2.9 %IMF est.2025 · IMF | -3.5 %IMF est.2025 · IMF |
| Gross public debt (% of GDP) | 41 %IMF est.2025 · IMF | 70.7 %IMF est.2025 · IMF |
| Current account balance (% of GDP) | -0.11 %2025 · World Bank | 1.69 %2024 · WB |
| Population | 285,721,2362025 · World Bank | 35,977,8382025 · WB |
| Area | 1,916,907 km²2023 · World Bank | 330,411 km²2023 · WB |
| Military expenditure | ||
| Military expenditure (% of GDP) |
Definitions, dates and sources
Blank cells are not zero. Average annual inflation and the latest year-on-year figure appear in separate rows: they are not the same measure. Every annual indicator retains its reference year; when the years differ, the figures are identified as not directly comparable. When a figure is unavailable from the World Bank, an annual IMF estimate is used and identified as such. The latest year-on-year figure is the latest official release verified as of 7 October 2026. This includes advance releases marked as provisional. Mexico may have a fortnightly figure before the full month is published; it is not automatically compared with a monthly figure. The publication date is retained in each source’s details; it does not replace the observation period or the annual average. Policy rates carry their own dates and represent different instruments. Spain and France share the ECB rate. Balances are positive for surpluses and negative for deficits. The IMF may use fiscal years; unemployment retains each source’s definition (ILO estimates, IMF WEO or PCBS), as stated in the details. For Palestine, debt and the fiscal balance cover central government and retain the PCBS definition; they are not presented as consolidated general government. These are economic magnitudes, not measures of relationship quality.
Area retains each source’s territorial coverage; it does not determine sovereignty or effective control. Canada uses an archived national geographic reference. Military expenditure retains the 2024 SIPRI sample distributed by the World Bank: the amount and percentage of GDP use that same definition, which differs from NATO’s. It is not an approved budget or a 2026 figure. Information from the Stockholm International Peace Research Institute (SIPRI). Military expenditure database · Terms of use0
Indicators reviewed: 2026-10-07. Each source retains its original access date; this review does not turn all the data into 2026 observations. Figures may be revised.
- Nominal GDP
- Current USDIndonesia: 2025 · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- GDP per capita
- Current USD per personIndonesia: 2025 · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- GDP growth
- Annual real change (%)Indonesia: 2025 · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- Policy interest rate
- Central bank instrument (%)
- Inflation · annual average
- Average annual change in headline CPI (%)Indonesia: 2025 · Annual average change in CPI (%) · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2025 · Annual average change in the CPI (%) · World Bank · Official World Bank series. Observation year, not download date.
- Inflation · latest year-on-year figure
- Headline CPI relative to the same period of the previous year (%); monthly or fortnightly frequency statedIndonesia: 2026-09 · Headline CPI; change against the same month of the previous year · BPS Indonesia · National headline CPI year-on-year; not the monthly change or January–September average.
- Unemployment
- % of the labour force; definition used by the stated institutionIndonesia: 2025 · ILO modelled estimate, percentage of the labour force · World Bank · ILO est. · Official World Bank series; observation period, not download date.Malaysia: 2025 · ILO modelled estimate; percentage of the labour force · World Bank · ILO est. · Official World Bank series. Observation year, not download date.
- Budget balance
- General government (% of GDP)Indonesia: 2025 · IMF · IMF est. · IMF WEO general-government estimate. Retains the source’s fiscal year when it differs from the calendar year.Malaysia: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Gross public debt
- General government (% of GDP)Indonesia: 2025 · IMF · IMF est. · IMF WEO general-government estimate. Retains the source’s fiscal year when it differs from the calendar year.Malaysia: 2025 · IMF · IMF est. · WEO general-government estimate, % of GDP. Not an observed balance for the current month.
- Current account balance
- % of GDPIndonesia: 2025 · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2024 · World Bank · Official World Bank series. Observation year, not download date.
- Population
- PeopleIndonesia: 2025 · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2025 · World Bank · Official World Bank series. Observation year, not download date.
- Area
- Total area in km²; territorial coverage of the sourceIndonesia: 2023 · World Bank · Official World Bank series; observation period, not download date.Malaysia: 2023 · World Bank · Official World Bank series. Observation year, not download date.
- Military expenditure
- Current USD per year; SIPRI series
- Military expenditure (% of GDP)
- Percentage of GDP; SIPRI definition, not NATO’s definition
Other data specific to this relationship
What they buy and sell
Documented selection, not an exhaustive list. Cells without a figure do not mean zero value; some products are identified without a verified amount.
Indonesia to Malaysia
| Product or sector | Value / share |
|---|---|
| Mineral fuels and oils | 3,653 M USD2025 · Source |
| Land vehicles and components | 672.6 M USD2025 · Source |
| Electrical and electronic equipment | 365.1 M USD2025 · Source |
| Machinery and mechanical appliances | 359.7 M USD2025 · Source |
| Pharmaceutical products | 35.6 M USD2025 · Source |
Malaysia to Indonesia
| Product or sector | Value / share |
|---|---|
| Mineral fuels and oils | 5,396.7 M USD2025 · Source |
| Machinery and mechanical appliances | 808.2 M USD2025 · Source |
| Electrical and electronic equipment | 734.4 M USD2025 · Source |
| Land vehicles and components | 85.6 M USD2025 · Source |
| Pharmaceutical products | 5.6 M USD2025 · Source |
Connections between people
Education, work, visits and community connections have their own records and procedures. Residents are not equivalent to annual arrivals, and visits may be repeated. The tables retain dates, definitions and sources to distinguish these connections from business contracts and government decisions. [1]
Residents, study and travel
Blank cells: data unavailable. Each measure retains its definition and period.
| Indicator | Value | Period / source |
|---|---|---|
| Residents from Indonesia living in Malaysia | ||
| Residents from Malaysia living in Indonesia | ||
| Study and training: Indonesia in Malaysia | ||
| Study and training: Malaysia in Indonesia | ||
| Academic stays: Indonesia in Malaysia | ||
| Academic stays: Malaysia in Indonesia | ||
| Travel: Indonesia to Malaysia | ||
| Travel: Malaysia to Indonesia |
What each figure measures
Residents are counted by nationality and the coverage of the stated register, not as people born in the other country or as new arrivals in one year. PERE includes dual nationals and people born outside Spain. Study with OPT and stays carrying academic credit are different measures. Travel may include several visits by the same person; FRONTUR arrivals require an overnight stay, whereas the Canadian survey includes day visits. These figures are neither added together nor automatically compared across directions.
Mobility data added or reviewed: 2026-10-07. Reference periods may be earlier.
Underlying ties
History, institutions and long-standing issues.
Contacts between leaders
Joint declarations of 27 June 2025 document bilateral dialogue and practical cooperation matters. The relationship has institutions and business connections beyond that meeting. Intergovernmental agreements and private operators' decisions retain different scopes. Shared regional participation does not eliminate differences on maritime jurisdiction or requirements for specific projects. [1]
Ambalat and joint development
The Indonesian president explained that the parties wanted to begin joint-development economic cooperation while addressing legal issues over Ambalat. That proposal is attributed to the presidential declaration without presenting the dispute as resolved. An exploitation arrangement and delimitation of sovereignty have different functions. The announcement does not allow reserves, revenues or implemented investment to be counted without their own records. [1]
Neighboring countries' economies
Customs trade can link businesses, intermediate products and consumers, with border and transport connections. Those activities have coverage different from a specific maritime project. The table presents 2025 values with one reporting country, not an estimate of the entire value of regional chains. Investment, services and resident communities require separate measures. [1]
The scale of the two economies
Indonesia recorded nominal GDP of USD 1445.6 billion in 2025, compared with 472.2 in 2025 for Malaysia. The reference populations were 285.72 million (2025) and 35.98 million (2025), respectively. In the same year, Indonesia's nominal GDP was 3.06 times that of Malaysia. The figures contextualize market size; they do not in themselves describe well-being, individual wealth or political influence. IMF estimates or demographic extrapolations retain their markings in the table. A ratio is not calculated when the periods do not match. [3] [4] [5] [6]
Recent developments
Recent developments and latest available data · Reviewed: 2026-10-07
The June 2025 agenda
The meeting identifies a proposed economic path for a sensitive issue and shows continuing dialogue. It is not treated as proof that all projects are operational or that a new border has been agreed. The profile combines that episode with trade data, keeping legal control, business cooperation and human movements separate. [1]
Observed economic exchange
In 2025, goods recorded between Indonesia and Malaysia totaled 24,224 million USD. Indonesia's shipments to Malaysia were USD 13,099.7 million; shipments in the opposite direction were USD 11,124.3 million. Indonesia's shipments to the partner represented 4.65% of its goods exports to the world, using the same year and reporter. A single customs declaration is used for both directions. This annual flow does not include all services activity or subsidiaries' local sales and is not added to accumulated investment capital. [2]
Milestones and consequences
Sources and data
Periods and scope of the figures
Each figure retains its period, unit, definition and source. Announcements, contracts and results are not interchangeable. Empty cells do not mean zero. Customs data for 2025 are not presented as activity observed during later crises.
- Leaders' declarations on cooperation and Ambalat
Indonesian State Secretariat · Institutional source · Document: 2025-06-27 · Accessed: 2026-10-07
- Annual TOTAL X/M; 2025; reporter 360; partners 0,458
UN Comtrade / IDN · Institutional source · Accessed: 2026-10-07
- NY.GDP.MKTP.CD; country ISO and year preserved; no military data; exact requested country subset independently re-fetched and values compared
World Bank · Institutional source · Accessed: 2026-10-07
- NY.GDP.MKTP.CD; ISO and reference year; no military dataset expansion
World Bank · Institutional source · Accessed: 2026-10-07
- SP.POP.TOTL; country ISO and year preserved; no military data; exact requested country subset independently re-fetched and values compared
World Bank · Institutional source · Accessed: 2026-10-07
- SP.POP.TOTL; ISO and reference year; no military dataset expansion
World Bank · Institutional source · Accessed: 2026-10-07
- HS2 27; 2025; reporter 360; partners 458; X/M; annual goods
UN Comtrade / IDN · Institutional source · Accessed: 2026-10-07
- HS2 30; 2025; reporter 360; partners 458; X/M; annual goods
UN Comtrade / IDN · Institutional source · Accessed: 2026-10-07
- HS2 84; 2025; reporter 360; partners 458; X/M; annual goods
UN Comtrade / IDN · Institutional source · Accessed: 2026-10-07
- HS2 85; 2025; reporter 360; partners 458; X/M; annual goods
UN Comtrade / IDN · Institutional source · Accessed: 2026-10-07
- HS2 87; 2025; reporter 360; partners 458; X/M; annual goods
UN Comtrade / IDN · Institutional source · Accessed: 2026-10-07
Additional sources on products and human connections
- UN Comtrade / IDN
2026-10-07 · Accessed: 2026-10-07 · HS2 27; 2025; reporter 360; partners 458; X/M; annual goods.
- UN Comtrade / IDN
2026-10-07 · Accessed: 2026-10-07 · HS2 87; 2025; reporter 360; partners 458; X/M; annual goods.
- UN Comtrade / IDN
2026-10-07 · Accessed: 2026-10-07 · HS2 85; 2025; reporter 360; partners 458; X/M; annual goods.
- UN Comtrade / IDN
2026-10-07 · Accessed: 2026-10-07 · HS2 84; 2025; reporter 360; partners 458; X/M; annual goods.
- UN Comtrade / IDN
2026-10-07 · Accessed: 2026-10-07 · HS2 30; 2025; reporter 360; partners 458; X/M; annual goods.