TEMPO.CO, Jakarta - The Indonesian government and the Kingdom of Saudi Arabia have agreed to work closely on developing foreign trade strategies, marketing researches, fostering joint activities and joint courses in trade and trade information exchange. Indonesian Trade Minister Enggartiasto Lukita said that the two countries have also agreed to share experience in trade database and to encourage businesses participation in forums, workshops and seminars.
“Following the agreement, Indonesia and Saudi Arabia are expected to explore and jointly encourage bilateral trade,” Enggartiasto said in a written statement on Thursday, March 2, 2017.
Engartiasto added that Indonesia is wishing to step up trade cooperation with Saudi Arabia through the preferential trading area (PTA) or the comprehensive economic partnership agreement (CEPA). However, Saudi Arabia is tied with the Gulf Cooperation Council customs union, therefore, trade deals must be entered into with the GCC.
As such, Indonesia is hopeful to get Saudi Arabia’s backing to commence a joint feasibility study in the framework of Indonesia-GCC cooperation. “Saudi Arabia is a key player in the GCC. Our trade relations and cooperation have not been maintained well,” Enggartiasto said.
Indonesia trade with Saudi Arabia totaled an estimated USD4.06 billion in 2016, or down by 25.98 percent compared to 2015. In the same year, Saudi Arabia is Indonesia’s largest export destination in the Middle East amounting to USD1.33 billion, whereas the Indonesia’s import from Saudi Arabia was USD2.73 billion.
Indonesia saw a trade deficit with Saudi Arabia of USD1.39 billion in 2016 due to a substantial amount of oil and gas imports. On the contrary, Indonesia experienced non-oil and gas trade surplus at USD627.5 million. “King Salman’s visit is expected to bring a positive momentum in a bid to improve trade relations and investment, which have not been exploited well,” the Trade Minister said.
King Salman bin Abdulaziz al-Saud’s visit to Indonesia is a historic one. A Saudi King last visited Indonesia in 1970 or 47 years ago. King Salman bring along an entourage of 1,500 persons comprising of state officials and businessmen to explore cooperation opportunities in various sectors, particularly the economy.
DIKO OKTARA
