A Value Of 345 Million US Dollars, Indonesia Achieves Trade Cooperation With Three Asian Countries

Illustration (Photo: Doc. Antara)

JAKARTA - The government through the Ministry of Trade (Kemendag) has succeeded in reaching an export agreement with three Asian countries, namely China, Japan and the Philippines with a trade return scheme. The value is 345 million US dollars.

Director General of National Export Development of the Ministry of Trade Didi Sumedi said this collaboration took place between PT Trade Barter Indonesia (PT TBI) and Japan Agriculture Hokkaido (JA Hokkaido), Asian Pyrochem Technologies Incorporated from the Philippines, and Prestige International Trading Company Ltd from China.

"So far, Indonesia has made trade returns in the context of procuring the defense and security equipment (Alpalhankam) sector. But currently, it is also encouraged by the return of business to business (b to b) as one of the breakthroughs to increase national exports," he said in a press statement, Sunday, October 23.

According to Didi, trade returns are not new but have been carried out by business actors for a long time. Indonesia sees trade returns as an alternative to strengthening national exports.

"Since the end of 2020, the trade returns program has been explored to 38 countries and it has agreed on six memorandums of understanding (MoU), namely with Russia, Germany, the Netherlands, Turkey, Hungary, and the Philippines as well as a contract with Mexico," he said.

Didi explained that this program was coordinated by the Executive Coordinator (EC) who acted to coordinate domestically with business actors, namely exporters and importers in their respective countries. In addition, this program will also cooperate with banks and relevant stakeholders.

On the same occasion, Plt. Director General of Foreign Trade Veri Anggrijono also appreciated the signing of the Letter of Intent (LoI) in this trade return scheme and hoped that a trade transaction process would be carried out soon.

"Through this initial commitment, the two business actors are expected to be able to make real transactions in early 2023," he said.

Meanwhile, the President Director of PT TBI Hendra stated that he was ready to socialize the b to b trade returns scheme while completing information from the Ministry of Trade regarding trade returns.

"A total of 20 commodities are the main focus for trading, including jewelry, optical fiber, household electronics, furniture, machinery, coffee, tea, rubber, trains, fruit juice drinks, and palhankam products, of course also open to other potential products," said Hendra.