Jakarta – The Indonesian government is tapping new potential markets for palm oil and other top commodities, after seeing a growing tension of trade relation with European Union (EU) following the recent issuance of European Union Deforestation Regulation (EUDR), which restricts agricultural and forestry products in the market.
To realize the plan, Trade Minister Zulkifli Hasan made a 3-day working visit to Cairo, Egypt, on 14 – 16 May 2023 to penetrate the non-traditional markets in Africa and the Middle East for the country’s export commodities, including palm oil.
“The non-traditional markets in Africa, such as Egypt are potential markets that we should be working on intensively. We’ll meet a number of stakeholders with a view to increasing our trade cooperation in Egypt,” he said during the visit.
The minister said that Egypt and Iran are two potential big markets that should be tapped for new export markets of its top commodities.
During his visit, Zulkifli Hasan signed a memorandum of understanding (MoU) on Joint Trade Committee (JTC) with Egypt’s Trade and Industry Minister. In the meantime, Indonesia and Iran are finalizing negotiations on Prefential Trade Agreement (PTA), which is expected to push up their trade relations.
Djatmiko Bris Witjaksono, Director General of International Trade at Indonesia’s trade ministry said that the Indonesian government has to be creative and innovative in developing new potential markets, as the EU has imposed trade restrictions against its agricultural and forestry products to its market.
“Egypt, Iran, Saudi Arabia and other countries in the Middle East are emerging markets, which can be tapped as our new export markets,” Djatmiko said during a teleconference on Monday, 22 May 2023.
“With the establishment of JTC with Egypt and PTA with Iran, our exports, especially palm oil, can be increased from time to time,” he said.
He pointed out that currently Indonesia’s trade relations with Egypt and Iran are very good. “In 2022, total trade value between Indonesia and Egypt reached US$1.5 billion, in which Indonesia enjoyed a surplus of USD1.1 billion. Trade with Iran reached US$250 million, of which Indonesia has a surplus of more than US$200. We’re confident that our trade relations with both countries will continually increase,” he said.
According to him, during January – March 2023, total trade between Indonesia and Egypt reached US$432.9 million, which declined by 12% compared to that of the same period in 2022 at US$492.1 million. During the period Indonesia’s exports to Egypt reached US$379.4 million while Indonesia’s imports from Egypt amounted to US$53.5 million.
Indonesia’s main exports to Egypt are palm oil, coffee, coconut, and yarns, while its imports from Egypt are fertilizers, dates, fig fruits, pine, avocado, guava, refined sugar, and natural calcium phosphate. (*)
Source: Liputan6.com/Tempo.co