Saudi Arabian distributor Mohammed Bawazir for Trading Co., Ltd (MBT) has signed a Letter of Intent (LoI) to purchase US$60 million (Rp 975.85 billion) of Indonesian processed foods, initially focusing on ready-to-drink coffee, biscuits, and canned tuna, with potential expansion to other Indonesian products.
The LoI was signed on Monday, August 25, 2025 by MBT Managing Director Fawzi Bawazier, during a visit to MBT by Director General of National Export Development (PEN) at the Indonesian Ministry of Trade, Fajarini Puntodewi.
Puntodewi was accompanied by PEN Secretary Arief Wibisono and Head of the Indonesian Trade Promotion Center (ITPC) Jeddah Bagas Haryotejo.
“The signing of this US$ 60 million LoI by MBT is great news for Indonesia. It shows that Indonesian products have the quality to compete in the global market,” Puntodewi said as quoted in a statement on Wednesday, August 27, 2025.
She added that the ministry will follow up on the commitment with strategic steps, including product presentations by Indonesian micro, small and medium enterprises (MSMEs) and business matching under the BISA Export program.
MBT, a long-standing partner in distributing Indonesian food and beverage products in Saudi Arabia, has received the Primaduta Award three times (2016, 2019, and 2024) for its contributions. Bawazier reaffirmed MBT’s commitment to promoting Indonesian products in the Saudi market, emphasizing their strong potential.
“We are very open to supporting Indonesian businesses, whether large companies or MSMEs, which eye the Saudi Arabian market. We hope Indonesian businesses will not only focus on domestic market, but also actively explore Saudi Arabia,” he said.
In a separate statement, Minister of Trade Budi Santoso highlighted ongoing negotiations for the Indonesia-Gulf Cooperation Council Free Trade Agreement (Indonesia-GCC FTA) to further open market access.
“The negotiations are underway and will be concluded soon. Indonesian businesses must prepare to seize the opportunities,” he said.
From January to June 2025, total trade between Indonesia and Saudi Arabia reached US$3.28 billion, with Indonesia recording a surplus of US$128 million. Indonesia’s exports to Saudi Arabia rose 49.53 percent year-on-year to US$1.70 billion, while imports stood at US$1.58 billion. Processed food exports amounted to US$134 million during the period, up 4.03 percent compared to last year, making them a key driver of export growth.
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