JAKARTA: Saudi Arabia is a strategic and priority market for Indonesia, a top trade ministry official said on Tuesday, as Southeast Asia’s biggest economy seeks to increase its presence in the Middle East.
Trade between Indonesia and Saudi Arabia increased to $7 billion, or about 45 percent, between January and November last year compared to the same period last year.
Trade Minister Zulkifli Hassan visited Riyadh last week, leading a special delegation seeking to explore untapped export potential with the Kingdom.
“The trade potential between Indonesia and Saudi Arabia is huge and very strategic,” said Didi Sumedi, director general of national export development at the Indonesian Ministry of Trade, adding that “it has not been maximized.”
Increasing ties with the Kingdom will also help Indonesia increase its presence in the Middle East.
“Saudi Arabia is a priority in this matter because it is a strategic partner with the largest economy in the Middle East,” Sumedi said.
Improving ties with Saudi Arabia would pave the way for better relations with GCC countries, as Indonesia is pushing for a trade deal with the bloc.
Indonesia signed a trade deal with the United Arab Emirates in July last year, expected to boost its emirate-bound exports by about 8 percent annually.
The agreement, which wipes out about 99 percent of existing tariffs, is still pending ratification by the Indonesian House of Representatives.
In Saudi Arabia, Indonesia is looking to increase exports of processed food and everyday goods including paper and clothing.
“We see that we can further improve trade between the two countries,” Sumedi said.
He added that the ministry is also considering supporting Indonesian retail businesses to open in Madinah, Makkah and Jeddah.
“Our hope is that with modern shops in Saudi Arabia, Indonesian business owners, including small businesses, can easily market their products,” Sumedi said.
“It will definitely boost our national exports as well.”