Some Indonesian products including foods, agriculture products and electronics will be shipped to China soon following a business agreement amounting to at least USD1.43 billion.
The business deal in the form of memorandum of understanding (MoU) and Letter of Intent (LoI) was a follow up of the Trade Expo Indonesia Digital Edition (TEI-DE) 2021, which is held on Oct. 21-Nov.4, 2021. Showcase meanwhile will run until Dec. 20.
The products include canned pineapple, mangosteen, coffee, agriculture crops, food and beverage, electronic appliances and balsawood, among other.
Also present at the signing of the agreement were Deputy Trade Minister Jerry Sambuaga, Indonesian Ambassador to China and Mongolia Djauhari Oratmangun, Trade Ministry Director General of National Export Development Didi Sumedi and Agriculture Ministry Head of Quarantine Agency Bambang.
Deputy Trade Minister Jerry said the signing of the cooperation was a stepping stone to increase trade growth and develop partnership relations between Indonesia and China. “Through this trade agreement, it is hoped that the two parties can synergize with each other to encourage an increase in the value of trade between the two countries,” he said in a press statement.
Jerry appreciated the Indonesian Embassy in Beijing for conducting outreach, promotion and business exploration as a follow-up to the 2021 TEI-DE event. Previously, this exhibition had resulted in various agreements and trade commitments between Indonesian business actors and their partners.
Among other things, the signing of an MoU with Chinese business actors for bamboo products bambusae concretio silicea (a traditional Chinese herbal raw material) worth USD 100 million at the opening of TEI-DE on Oct. 21. In addition, the signing of the MoU for various products worth USD 150 million at the Indonesian Embassy in Beijing on Nov. 11, 2021.
“I congratulate Indonesian companies that have succeeded in reaching business agreements and appreciate Chinese importers who have committed to building long-term business with Indonesia,” said Jerry.
Meanwhile, in his report, Didi revealed that until now the TEI-DE 2021 event has recorded transactions of more than USD 6 billion. At this event, transactions with Chinese trading partners have reached USD 1.78 billion or 29.6 percent of the total transactions.
“The success of the TEI transaction which has exceeded the target is due to the hard work of various parties, including the Indonesian Trade Representative who succeeded in attracting buyers. It is hoped that the acquisition of transactions will be even greater in the future,” said Didi.
In the January–September 2021 period, total trade between Indonesia and China reached USD 75.88 billion, an increase of 50.92 percent over the same period the previous year. In that period, Indonesia’s exports to China were recorded at USD 36.29 billion, while Indonesia’s imports from China amounted to USD 39.49 billion.
Indonesia’s main export products/commodities to China include nickel, coal, lignite, vegetable oil and steel. Meanwhile, Indonesia’s imports from China are among other spare parts for transmission equipment, vaccines, electronic products and spare parts, garlic, and steel products.
Separately, Minister of Trade Muhammad Lutfi emphasized that Indonesia always applies sustainable economy. Indonesia is responsible not only for (the quality of) Indonesian goods, but also for the forests which are the foundation of life for the Indonesian people in the present and in the future.
This important message was conveyed by Minister Lutfi when witnessing the shipment of viscose rayon fiber products manufactured by PT Asia Pacific Rayon (APR) to global and domestic markets on Wednesday, in Pangkalan Kerinci, Pelalawan regency, Riau Province.
Lutfi also witnessed the the export of PaperOne papers, produced by PT Riau Andalan Pulp and Paper (RAPP), which has been sold to more than 75 countries with total exports reaching more than 755,000 tons. Lutfi was accompanied by Deputy Governor of Riau Edy Natar Nasution, Regent of Pelalawan Zukri Misran, RGE Managing Director Anderson Tanoto, COO of APRIL Eduward Ginting and Director of APR Basrie Kamba. (KH)