Wamendag: Indonesia-Netherlands Partnerships Increase CPO Potential And East Kalimantan Wood Products

Deputy Minister of Trade, Jerry Sambuaga. (Photo via Antara/Kemendag)

JAKARTA - Deputy Minister of Trade Jerry Sambuaga believes that the partnership with the Netherlands is able to increase the potential of East Kalimantan in Indonesia's global value chain. This is because the Netherlands has strategic value as one of the entrances for Indonesian products to the European market. Especially for superior products from East Kalimantan such as CPO and its derivatives as well as wood products.

Moreover, said Jerry, the long history of economic partnership relations between Indonesia and the Netherlands has become a privilege that can bring benefits to the two countries.

"For this reason, this trade relationship needs to be further improved considering that the Dutch are members of the European Union. We hope that the Netherlands can become the gateway and bridge of Indonesia's trade with other European Union countries," he said in an official statement, Friday, September 23.

Jerry said East Kalimantan occupies the 8th largest position as Indonesia's non-oil and gas exporter to the Netherlands. The value of East Kalimantan's non-oil and gas exports to the Netherlands from January to July 2022 reached 135.8 million US dollars, an increase of 68.5 percent (YoY).

Jerry also appreciated the DPD RI BKSP for organizing space for dialogue. The Ministry of Trade hopes that this forum can encourage East Kalimantan's efforts to become an important part of Indonesia's global value chain.

"To optimize Indonesia and the Netherlands trade partnerships, of course the government needs cooperation and support from all stakeholders, including DPD support and stakeholders in the East Kalimantan region," said Jerry.

Jerry said, one of the agendas proposed by Indonesia at the 2022 G20 Presidency is the global value chain. The agenda discusses efforts to encourage economic growth through participation in increasing the competitiveness of micro, small and medium enterprises (MSMEs) and the industrial sector in Indonesia in the global value chain network. In addition, it discusses the importance of developing a sustainable global value chain.

"The G20 is a strategic forum for Indonesia to voice the national priority agenda and the interests of developing countries. There needs to be a common understanding between G20 member countries in creating a global value chain that provides benefits and increases the participation of all stakeholders, especially in the context of national and global economic recovery," he said.

Indonesia-Netherlands Trading Performance

Based on data from the Ministry of Trade, the Netherlands is Indonesia's 12th non-oil and gas export destination. Meanwhile, in terms of imports, the Netherlands became the origin of Indonesia's 26th non-oil and gas imports.

In the period 2017 to 2021, Indonesia and the Netherlands' trade performance recorded a surplus for Indonesia. Meanwhile, in 2021, the trade surplus reached 3.78 billion dollars or the highest in the last five years.

Meanwhile, in January-July 2022, the trade surplus will also be higher on an annual basis and reach USD 2.9 billion.

The main products of Indonesia's non-oil and gas exports to the Netherlands include chemical products, CPOs and their derivatives, organic chemicals, grounds and rest of the food industry, as well as footwear.

The imports of non-oil and gas from Indonesia from the Netherlands include mechanical machinery or aircraft, pulp, plastic and goods from them, machinery or electrical equipment, as well as dairy and butter products.