JAKARTA - Indonesia and Malaysia have agreed to strengthen trade relations, especially in the energy sector. As a neighboring country, Malaysia is an export destination for Indonesian energy products, especially coal.
As told by Deputy Minister of Trade Jerry Sambuaga when receiving Malaysian Minister of Energy and Natural Resources Datuk Seri Takiyuddin bin Hassan. "Malaysia has long been one of Indonesia's main trading partners, and the energy sector is no exception. For this reason, trade relations with Malaysia must be strengthened in the future," said Deputy Minister of Trade Jerry in a statement received by Antara, Sunday, May 29.
Jerry emphasized that Indonesia would certainly try to maintain and increase coal exports to Malaysia. However, of course, taking into account domestic needs which are the main priority.
On the same occasion, Director General of National Export Development Didi Sumedi stated that Malaysia is a target for the export of various superior non-oil and gas products from Indonesia. "The value of Indonesia's exports to Malaysia shows an encouraging value. In 2021, Indonesia's non-oil and gas exports will be recorded at USD 10.64 billion or a 52.65 percent growth compared to 2020," Didi added.
Furthermore, Didi said that the trade surplus between Indonesia and Malaysia could still be increased. In 2021, Indonesia will have a trade surplus with Malaysia of USD 2.56 billion. “This achievement is a positive signal from Indonesia's trade performance. Our balance sheet continues to experience a surplus, even surging 119.2 percent in 2021 compared to the previous year," said Didi.
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Currently, the energy sector is facing various challenges, especially the impact of the conflict between Russia and Ukraine. This could actually be an opportunity for Indonesia to fill the void in the energy sector, especially coal to Malaysia.
The Ministry of Trade noted that Indonesia is the largest coal exporting country to Malaysia. In 2021, Malaysia will import Malaysian Ringgit 16.6 billion of coal, with 73.8 percent of it coming from Indonesia.
Other exporting countries are Australia and Russia with a market share of 17.9 percent and 7.3 percent, respectively. "Indonesia's contribution to meeting energy needs in Malaysia is very large. Of course this is a driving force for Indonesia to maintain a trade balance surplus with Malaysia," concluded Didi.
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