Indonesia, Malaysia Ink Trade Deals Worth US$87.89 Million

TEMPO.CO, Jakarta - The Trade Ministry facilitated the inking of 18 memoranda of understanding (MoUs) and Single Purchasing Statements (SPS) totaling US$87.89 million between Indonesian business actors and trading partners in Malaysia.

"This signing includes (trading of) the commodities of food and beverage, palm acid oil, coffee, tea, spices, herbal drinks, and Muslim clothing. The signing (event) was conducted on Monday (Nov 1) virtually," Trade Attache of the Indonesian Embassy in Kuala Lumpur Deden Muhammad Fajar Siddiq stated in Kuala Lumpur, Tuesday.

The signing of the trade contract took place in the second week of the Trade Expo Indonesia Digital Edition (TEI-DE) 2021 held from October 21 to November 4, 2021.

Director General of National Export Development of the Ministry of Trade, Didi Sumedi, who joined the virtual event, lauded Indonesian representatives in Malaysia and businessmen for helping boost exports to Malaysia through the trade contract.

He assessed that the signing of those trade contracts demonstrated the revival of trade between Indonesia and Malaysia in recent years.

"During the January-August period this year, the total trade between Indonesia and Malaysia has reached US$13.4 billion. In comparison with that during the same period last year, the increase is extraordinary, at 49.3 percent. This is an extraordinary achievement. We should laud the efforts of our representatives in helping to improve the performance of our trade exports to Malaysia," he emphasized.

Meanwhile, Ambassador of Indonesia to Malaysia Hermono, who was also present to witness the signing, noted that the economic conditions in Malaysia had currently starting to recover.

This is reflected through the economic movement observed in various economic sectors in line with the easing of social restrictions policies by the Malaysian Government.

"Various economic sectors have started running in Malaysia, and this has a direct effect on increasing demand for various products, especially from Indonesia. We are optimistic that this condition would continue to improve, so that it can return to the pre-COVID-19 economic conditions," Hermono added.

During the January-August 2021 period, Indonesia had recorded a trade surplus of US$2.01 billion.

The surplus was generated from Indonesia's exports to Malaysia of US$7.68 billion and Indonesia's imports from Malaysia of US$5.67 billion.

In comparison with the January-August 2020 period, Indonesia's trade with Malaysia had totaled US$9 billion.

Indonesia recorded a trade surplus of US$593 million, resulting from its exports to Malaysia, worth US$4.79 billion, and Indonesia's imports from Malaysia valued at US$4.20 billion .

The signing was also witnessed by the Indonesian Consul General in Penang Bambang Suharto, Indonesian Consul in Tawau Heni Hamidah, and Indonesian Embassy's Trade Attache, Deden Muhammad Fajar Shiddiq.

Read: TNI Holds Mass Vaccination in Indonesia-Malaysia Border

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