Trade Minister Zulkifri Hasan led an Indonesian trade mission to New Delhi, India, gathering 10 Indonesian businessmen, exporters, and related parties to plan a potential $3.2 billion deal.
“I chose India as my first overseas visit, because India is Indonesia’s strategic trading partner. The two countries have a long and close historical relationship, fellow G20 countries and their economies complement each other because we need each other,” said the Trade Minister in his statement in Jakarta, Tuesday, August 23.
The visit is the first foreign trade mission since the Secretary of Commerce took office on June 15, 2022.
On Monday, August 22nd, the Secretary of Commerce witnessed the signing of 22 cooperation agreements (MoUs) worth US$3.2 billion between business actors from both countries. The 22 MoUs signed today for trade missions include palm oil (CPO), olein, coal, furniture, plastic tools, and products made from pulp and paper.
“Specifically for palm oil products, the total commitments under the agreement are 2.6 million tons or worth 3.16 billion US dollars,” continued the Minister of Trade.
The MoU was also witnessed by Ina Hagnintias Krisnamurti, Ambassador of India and Bhutan to the Republic of Indonesia, and Didi Sumedhi, Director General of the National Export Development Authority.
Trade Minister Zulkifli Hasan expressed optimism about the achievement of the trade mission. According to the Trade Minister, this is a historic day for our two countries, because, during a situation full of uncertainty and economic challenges, Indonesia and India continue to strengthen strategic partnerships, especially in trade cooperation.
“Hopefully the mutually beneficial partnership between Indonesian and Indian business actors will be closer and sustainable,” said Trade Minister Zulkifli Hasan.
Zulkifli Hasan continues to be committed to encouraging non-oil and gas exports.
“The Ministry of Trade and of course through foreign trade representatives are also ready to help business players to increase exports and expand the export market,” concluded the Minister of Trade Zulkifli Hasan.
Business players who participated in the trade mission said that given that Indonesia is currently trying to revive the Indian consumer market, especially to cope with the growing demand for vegetable oil ahead of Deepavali Day on October 24, 2022, sales of CPO are expected to continue to grow. Said the timing was very appropriate.
India is the second biggest CPO export destination after China, with an export cost of US$3.4 billion in 2021, or 25 percent of Indonesia’s total exports to India.
Based on data from the Central Statistics Agency (BPS) processed by the Ministry of Trade, the total trade between Indonesia and India in January-June 2022 was recorded at 16.67 billion US dollars.
Indonesia’s total non-oil and gas exports to India during the period amounted to US$15.3 billion, up 75% from just US$8.7 billion in the same period last year.
Meanwhile, in 2021 the trade value between Indonesia and India will reach 19.8 billion US dollars with a surplus for Indonesia of 6.3 billion US dollars. Indonesia’s non-oil and gas exports to India in 2021 will be recorded at 13.11 billion US dollars.
TW Deora has responded to Zulhas’s visit to India. He hopes Zulhas’s visit to India can make potential transactions Of US$3.2 Billion from India become to be real not only hope.
“Indonesia has needed foreign capital, foreign investor and foreign grant to maintain national economic growth and financing the plan of new capital city in Penajam Paser Utara, Est Kalimantan, because of that Indonesia’s people hope President and all of cabinet members visit to foreign countries can give positive contribution for national economic, and it does not dream or not real,” added TW Deora as a national economic observer.
