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Deputy Trade Minister Jerry Sambuaga believes Indonesia still has significant opportunities to increase its contribution to Russia’s trade and investment sectors. In the meantime, Russia, a world leader in energy exports, grains, fertilizers, and metals, offers many opportunities for Indonesian businesses. This was explained by Deputy Minister of Trade Jerry Sambuaga at the Indonesia-Russia Exporters Forum held in Etnomir, Kaluga Oblast, Russia on Wednesday (17/7).
The Indonesia-Russia exporters forum was attended by Roy Nicholas Mandey, Chairman of the Indonesian Retailers Association (APRINDO); Ruslan Bayramov, founder of Etnomir and President of the Friendship Society with Indonesia; and Vladimir Platonov, President of the Moscow Chamber of Commerce and Industry (MCCI).
“Trade between Indonesia and Russia still has the potential to be developed and improved. Indonesia can still increase its contribution to the Russian trade and investment sector. This is shown by the trend of Indonesia’s exports to Russia, which over the past five years (2019-2023) has increased by 4.71%,” said Deputy Minister of Trade Jerry.
Deputy Trade Minister Jerry emphasized that the economic partnership between Indonesia and Russia is built based on mutual benefit and common goals. The Indonesia – Russia strategic partnership is developed to encourage closer and more sustainable trade relations. This partnership is about trade and fostering deeper economic ties that can stand the test of time and global economic shifts. The Indonesia – Russia Exporters Forum is one manifestation of the strategic partnership.
The Indonesia – Russia Exporters Forum is expected to enhance economic cooperation, provide mutually beneficial partnerships, and encourage stronger collaboration to navigate the dynamic global economy collectively. The forum demonstrates the commitment of both governments to maintain and facilitate trade relations, economic partnerships, and investments.
Deputy Trade Minister Jerry announced that the negotiations of the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU FTA) are going well. The 4th round of the talks took place in March 2024.
“The IEAEU FTA negotiations have entered the 4th round. The IEAEU FTA aims to foster deeper economic ties and facilitate trade and investment flows between Indonesia and EAEU member countries, including Russia. This agreement will pave the way for greater market access, reduced trade barriers, and increased economic collaboration,” he added.
Jerry also presented Indonesia’s economy to the forum participants. As the largest economy in Southeast Asia, Indonesia presents tremendous opportunities for businesses worldwide, with a Gross Domestic Product (GDP) of USD 1.32 trillion by 2023 and economic growth reaching 5.05 per cent.
“Indonesia has captured the world’s attention as a rising star in Asia in the last decade. It has also emerged as a powerhouse in strategic industries. This achievement is accompanied by an increase in GDP per capita to USD 4,919.7 in 2023, or an increase of 5.63 percent compared to the previous year. These conditions motivate Indonesia to continue to foster a conducive business environment and support inclusive economic growth for all levels of society,” said Deputy Trade Minister Jerry.
Indonesia experienced a significant increase in investment realization last year, reaching USD 89.3 million, or 17.5% more than the previous year. This achievement created 1.82 million jobs and exceeded the set target.
Based on the Ministry of Trade data, Indonesia’s exports to Russia in 2023 include palm oil worth USD 632.6 million, machine parts, USD 26.71 million, rubber worth USD 21.43 million, processed food worth USD 19.39 million, and chocolate fat worth USD 10.8 million. On the other hand, Indonesia’s imports from Russia grew 22.24% in 2019-2023. Indonesia’s main imports from Russia in 2023 include bituminous coal worth USD 495.6 million, steel iron USD 389.6 million, fertilizer USD 338.1 million, cereals USD 274.8 million, and asbestos USD 45.03 million.
On the occasion, Deputy Trade Minister Jerry also invited all Russian exporters to attend the 39th Trade Expo Indonesia (TEI), held on October 9-12, 2024. “The theme of the 39th TEI is ‘Build Strong Connection with The Best of Indonesia’.
This theme aims to build solid and lasting relationships between Indonesian businesses and partners worldwide, including Russia. We hope that Russian business players can take advantage of this momentum to establish mutually beneficial relationships with Indonesian business players,” said Deputy Trade Minister Jerry.
Source: Sawit Indonesia
