Indonesia and Malaysia explore ASEAN-Egypt free trade agreements
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RMOL - 12 Maret 2024
Indonesia and Malaysia explore ASEAN-Egypt free trade agreements
By Hani Fatunnisa
A bilateral meeting was held between the Trade Attaché of the Indonesian Embassy in Cairo and officials from the Trade Office of the Malaysian Embassy in Egypt on Sunday (10/3).
Present at the meeting were Trade Attaché of the Indonesian Embassy in Cairo M. Syahran Bhakti S, Economic Function Coordinator of the Indonesian Embassy in Cairo Tennike, Trade Commissioner of Malaysia Raphy Md Radzi, and Senior Marketing Manager of the Trade Office of the Malaysian Embassy at the Indonesian Embassy in Cairo Ghada Fayek.
The editorial team received a statement on Tuesday (13/2), in which the meeting of trade officials discussed a variety of subjects, one of which was joint efforts to investigate an ASEAN-Egypt Free Trade Agreement (AEFTA).
The Indonesian trade attaché emphasized the importance of increasing cooperation with Egypt in the fields of trade and investment because the country has long been an ASEAN business partner.
"Egypt is a strategic business partner and older brother to Indonesia and Malaysia; Indonesian and Malaysian products are industrial supporting products for Egypt and not competing products," said Syahran.
The Economic Function Coordinator of the Indonesian Embassy in Cairo explained. Tennike explained how Indonesia expanded its investment wings in Egypt with the presence of the Indomie instant noodle factory under the name Salim Wazaran Abu Alata.
According to him, ASEAN can take advantage of opportunities to expand cooperation with Egypt to gain access to European and African markets.
"Indonesia will hold the Indonesia-Africa Forum, which will be held in August 2024. It is hoped that it will be successful."providing concrete results for improving Indonesia’s economic and trade relations with African countries, including Egypt," explained Tennike.
Meanwhile, Malaysian Trade Commissioner Raphy Md. Radzi said that the opening of the Malaysian Trade Office in Cairo provides an opportunity for Malaysian products to enter the African market.
He welcomed Indonesia and Malaysia’s plans to explore a free trade agreement through AEFTA.
"Welcome it if Indonesia-Malaysia explores initial discussions on trade and industrial cooperation efforts between ASEAN and Egypt within the framework of the free trade agreement (AEFTA) at the upcoming ASEAN Committee in Cairo (ACC) session," said Raphy.
Based on BPS data, total trade between Indonesia and Egypt in the December 2023 period was recorded at 1.513 billion US dollars, down 3.04 percent compared to the same period in 2022, which was recorded at 1.561 billion US dollars.
Indonesia’s exports to Egypt were recorded at 1.312 billion US dollars, down 1.71 percent from the same period in 2022, which was recorded at 1.335 billion US dollars.
Meanwhile, Indonesia’s imports from Egypt amounted to 201.4 million US dollars, down 10.9 percent compared to the same period in 2022, which was recorded at 226 million US dollars.
Thus, the surplus for Indonesia in the trade balance with Egypt in December 2023 will be 1.111 billion US dollars.
For ASEAN countries, Indonesia ranks first in market share, followed by Egypt.
According to data from the Egyptian Bureau of Statistics (Capmas), in the January–November 2023 period, the market share for Indonesian products was 2 percent; Thailand was 0.99 percent; Malaysia was 0.96 percent; Vietnam was 0.74 percent; Singapore was 0.58 percent; and the Philippines was 0.03 percent.
