Indonesia-Saudi Arabia Sign Trade Cooperation Contract Worth Rp2,3 T

VIVA – The Indonesian Trade Minister, Zulkifli Hasan witnessed the signing of eight contracts between Indonesian businesses and five Saudi Arabian businesses with a contract value of more than US$155.7 million or around Rp2.3 trillion.

One of the signings was carried out by the Commercial Director of PT Perusahaan Perdagangan Indonesia (PPI), Andry Tanudjaja, and Said Bawazir Trading Company, which signed a cooperation on food products and MSME goods for distribution in Saudi Arabia.

The signing consisted of a trade contract, cooperation agreement, and memorandum of understanding (MoU), and took place on Monday, January 23, 2023, at the Saudi Chamber Federation Office in Jeddah, Saudi Arabia.

"I welcomed the signing of trade contract, cooperation agreement, and MoU between Indonesian businesses and Saudi Arabia businesses. It is hoped that the cooperation will continue with increasing trade value and more varied commodities," Minister Zulkifli said in a written statement.

Minister Zulfikar also said that Indonesian businesses will export several commodities to Saudi Arabia, including foods, RBD palm olein, cooking oil, processed fish products, meat, vegetables, and its processed derivatives, fruits, cacao, rice, spices, noodles, and charcoal.

Riyadh Trade Attaché, Gunawan added that this moment is expected to open opportunities for Indonesia to be increasingly recognized by the people of Saudi Arabia.

"We will continue to encourage more cooperation with Saudi Arabian businesses to increase non-oil and gas exports," he said.

The same thing was also conveyed by the Head of ITPC Jeddah Muhammad Rivai Abbas. According to him, the potential for trade between Indonesia and Saudi Arabia can be utilized more optimally, “Through the signing of this cooperation, it is hoped that trade and economic relations between the two countries will increase," he said.

The signing was facilitated by the Ministry of Trade, the Indonesian Embassy in Riyadh, and the Consulate General in Jeddah. Also accompanying Zulkifli Hasan were the Indonesian Ambassador to Saudi Arabia; Abdul Aziz, Director General of National Export Development; Didi Sumedi, and Director General of International Trade Negotiations; Djatmiko Bris Witjaksono.

In January - November 2022, the total trade between Indonesia and Saudi Arabia reached US$7 billion, an increase of 45.42 percent compared to the same period the previous year which amounted to US$4.8 billion. Meanwhile, the total trade between the two countries in 2021 reached US$ 5.5 billion.