It is bordered by Papua New Guinea and the Arafura Sea in the east, the Indian Ocean in the south and west, the Andaman Sea in the northwest, and the Strait of Malacca, the South China Sea, the Sulu Sea, the Celebes Sea, and the western Pacific Ocean in the north. It is bordered by Papua New Guinea and the Arafura Sea in the east, the Indian Ocean in the south and west, the Andaman Sea in the northwest, and the Strait of Malacca, the South China Sea, the Sulu Sea, the Celebes Sea, and the western Pacific Ocean in the north. The staple crop is rice, and government efforts at estate modernization have increased rice yields substantially Products Independent peasant farmers account for most of the country's agricultural production, although there is an important estate sector that produces cash crops mainly for export. In general, Indonesia exports raw materials in return for manufactured goods. Oil, natural gas, timber products, garments, and rubber are the country's major exports.
Imports largely consist of capital equipment, consumer goods, and foodstuffs.
Indonesia's most important trading partners are Japan, the United States, Singapore, and Germany. Indonesia is the most populous nation in Southeast Asia. It is advantageously located between mainland Asia and Australia. The country has a critical role to play in the development of its part of the world. Britannica Online .