PALMOILMAGAZINE, Kuala Lumpur – Indonesia’s Minister of Trade, Budi Santoso (commonly known as Trade Minister Busan), accompanied President Prabowo Subianto in a meeting with Malaysian Prime Minister Anwar Ibrahim in Kuala Lumpur on Monday (January 27).
The meeting resulted in an agreement to enhance strategic cooperation, particularly in trade and investment, including the management of the palm oil industry, which is a key commodity for both nations.
“President Prabowo emphasized that every country he visits expresses a need for palm oil. He hopes that cooperation between Indonesia and Malaysia in this sector can be further strengthened,” said Trade Minister Busan, as quoted by Palmoilmagazine.com from the official Ministry of Trade website.
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Indonesia and Malaysia collectively account for 80% of the world’s palm oil production, making them the two largest producers globally. Trade Minister Busan expressed appreciation for Malaysia’s support in strengthening collaboration within this sector. He also affirmed that the Ministry of Trade is ready to implement various initiatives to deepen cooperation in palm oil development.
“Indonesia hopes its partnership with Malaysia will continue to address emerging export barriers for palm oil in various countries,” he added.
Malaysia remains a vital trade partner for Indonesia, ranking as the 6th-largest export destination and the 5th-largest import source. From January to November 2024, total trade between the two nations reached USD 21.06 billion. During this period, Indonesia’s exports to Malaysia amounted to USD 10.97 billion, while imports from Malaysia totaled USD 10.09 billion, resulting in a trade surplus of USD 882 million for Indonesia.
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In comparison, total trade between the two nations in 2023 reached USD 23.2 billion. That year, Indonesia exported USD 12.5 billion worth of goods to Malaysia, while imports from Malaysia were valued at USD 10.8 billion, giving Indonesia a trade surplus of USD 1.7 billion.
Key non-oil and gas exports from Indonesia to Malaysia in 2023 included mineral fuels, animal and vegetable fats and oils, vehicles, iron and steel, and copper. On the other hand, Indonesia’s main non-oil and gas imports from Malaysia consisted of nuclear reactors, boilers, mechanical machinery, plastics, electronic equipment, organic chemicals, and iron and steel.
In terms of investment, Malaysia was Indonesia’s 5th-largest source of Foreign Direct Investment (FDI) in 2023, with a total investment of USD 4.06 billion—an increase of 21.4% compared to the previous year. (P3)