Indonesia, China Sign Agreement to Boost Trade Ties amid Pandemic

JAKARTA, KOMPAS.com – Indonesia has the potential to reap an additional $584 million in export receipts after the signing of a letter of intent (LOI) during the Indonesia-China Business Forum and Business Matching (ICBFBM) in Shanghai, said the Ministry of Trade.

The event was part of the 3rd China International Import Expo (CIIE) held from November 5-10.

Minister of Trade Agus Suparmanto expressed optimism that the trade cooperation will boost national exports as China is Indonesia’s main trading partner.

“The trade cooperation between Indonesia and China is expected to continue and increase, especially amid the global economic slowdown due to the Covid-19 pandemic,” he said in a statement on Wednesday, November 11.

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Kasan Muhri, the Trade Ministry’s director-general of national export development, said that the LOI signing will bring five Chinese companies to buy Indonesian products such as coal, tropical fruits, coconut by-products, fishery products, food and beverages, and agricultural products next year.

“The Ministry of Trade welcomes the LOI signing because it can boost national export performance. Besides, the role of Indonesian trade representatives abroad is expected to continue in contributing to national exports,” he said.

The business matching was attended by 16 Indonesian business representatives and five Chinese buyers. The products that they offer are fresh fruit, coffee, fruit chips, herbal drinks, jelly drinks, crackers, non-dairy creamer products, spices, food enhancers, and coconut by-products.

Also read: Indonesias Trade Talks Must Go On amid Pandemic: Trade Ministry

He hoped that ICBFBM can be an avenue to strengthen cooperation between Indonesia and China, and generate potential business transactions for the two countries amid the global economic slowdown resulting from the Covid-19 pandemic.

“ICBFBM is a program to increase trade cooperation between Indonesia and China,” said Kasan.
The ministry recorded that Indonesia’s export destinations were still dominated by China at 18.37 percent, while the US and Japan came in at second and third at 12.14 percent and 8.43 percent, respectively.

Indonesia is China’s 15th biggest supplier of imported goods after Malaysia, Vietnam, Thailand, and Singapore among ASEAN countries. The total bilateral trade between the two countries from January-September 2020 reached $50.27 billion, or down 4.20 percent compared to the same period last year.

Indonesia’s exports to China were $21.81 billion, mainly in non-oil exports with a contribution of $20.44 billion.

Meanwhile, the value of Indonesia’s imports from China reached $28.46 billion.

(Writer: Yohana Artha Uly | Editor: Yoga Sukmana)

Source: https://money.kompas.com/read/2020/11/11/091544426/ada-potensi-ekspor-rp-83-triliun-di-pameran-dagang-china.