Indonesia-Saudi Arabia Sign Trade Cooperation Contracts Worth IDR 2.3 Trillion

Photo: Doc. Antara

JAKARTA - The Minister of Trade (Mendag) Zulkifli Hasan personally witnessed the signing of eight cooperation agreements between Indonesian business actors and five Saudi Arabian business actors with a contract value of more than US$155.7 million or around Rp.2.3 trillion.

The signing consisted of trade contracts, cooperation agreements, and memoranda of understanding (MoU), which took place at the Federation Saudi Chamber Office in Jeddah, Saudi Arabia, Monday 23 January.

"I warmly welcome the signing of trade contracts, cooperation agreements, and MoUs between Indonesian and Saudi Arabian business actors. It is hoped that this cooperation will continue with increasing trade transactions and with an increasing number of types of commodities," said Trade Minister Zulkifli in his written statement. , quoted from Antara, Tuesday, January 24.

Trade Minister Zulkifli said Indonesian businesses would export a number of commodities to Saudi Arabia in the form of food, RBD palm olein, cooking oil, fish and processed products, meat, vegetables, and processed products, fruits, cocoa, rice, spices, egg noodles, and charcoal.

From the signing of the eight collaborations, there were two MoUs that was devoted to fulfilling the needs of pilgrims and Umrah pilgrims.

"The special MoU to meet the needs of pilgrims is intended for fish and processed products in various packages, as well as meat and vegetables in various types of packaging," said the Trade Minister.

He emphasized that Indonesian trade representatives overseas would always be ready to assist business actors in increasing exports, including promoting products and expanding markets.

Director General of National Export Development of the Ministry of Trade (Kemendag) Didi Sumedi said that his party would continue to try to increase exports to strategic and non-traditional trading partner countries.

"Opportunities for Indonesia's exports to Saudi Arabia are still wide open. For this reason, we invite business people to make optimal use of these opportunities so that Indonesia's exports to Saudi Arabia will increase," he said.

Trade Attache Riyad Gunawan also said that this moment was expected to open up opportunities for Indonesia to become increasingly known to the people of Saudi Arabia.

"We will continue to encourage more cooperation with Saudi Arabian business actors to increase non-oil and gas exports," said Gunawan.

The Head of ITPC Jeddah, Muhammad Rivai Abbas, also conveyed the same thing. According to him, the trade potential between Indonesia and Saudi Arabia can be utilized more optimally.

"Through the signing of this cooperation, it is hoped that trade and economic relations between the two countries will increase," he said.

The signing of these eight agreements was facilitated by the Ministry of Trade, the Indonesian Embassy in Riyadh, and the Indonesian Consulate in Jeddah. Accompanying the Minister of Trade Zulkifli Hasan were Indonesian Ambassador to Saudi Arabia Abdul Aziz, Director General of National Export Development of the Ministry of Trade Didi Sumedi, and Director General of International Trade Negotiations of the Ministry of Trade Djatmiko Bris Witjaksono.

In January-November 2022, total trade between Indonesia and Saudi Arabia reached US$7 billion, an increase of 45.42 percent compared to the same period the previous year of US$4.8 billion. Meanwhile, the total trade between the two countries in 2021 will reach US$5.5 billion.