Indonesia and the Philippines are looking at raising the level of existing bilateral trade to as much as $12 billion, given the prospective opportunities in seaweed, agriculture and palm oil plantation, mining, and even in retail and franchising.
Bayu Krisnamurthi, Vice Minister of Trade for Indonesia explained that this projected amount represented the potential bilateral trade that the countries could have enjoyed given more and better collaboration and cooperation among their respective governments and business communities.
“This showed how we are under the potentials. We have now less than half of this potential and so we will work hard to increase [trade figures]. But the government can only do so much, even in setting the goals. The [industry] associations could also look at collaborations,” Krisnamurthi further said.
Data from the Philippine Statistics Authority showed that Indonesia was the Philippines’ 11th biggest trading partner; 12th biggest export market; and 9th biggest import supplier. Total bilateral trade between the Philippines and Indonesia stood at $3.62 billion in with the country’s imports exceeded its exports to Indonesia.
Philippine Trade Undersecretary Adrian S. Cristobal Jr. added that both governments have a role to play to further spur trade and investments between the two countries.
One such program or measure was to organize events like the forum held in Manila on Friday, during which the seaweed industry associations from both countries had signed an agreement, while breakout sessions were held to discuss prospective investment opportunities in copper and palm oil.
A memorandum of understanding was signed Friday between Asosiasi Rumput Laut Indonesia and the Seaweed Industry Association of the Philippines.
According to Cristobal, this agreement was a result of continuing discussions between the Philippines and Indonesia to expand trade relations and investment. The Philippines is forging deeper economic ties with Indonesia by exploring other avenues for complementation and collaboration. Both countries have so far made progress in the areas of sea connectivity, and exploring mining and palm oil.
“We have to organize events like this to bring the business sector together. We also have to make sure that we have stable government policies and the right environment, as well as push the private sector to beef up and lead the way,” Cristobal explained in a press briefing.
“One of the things we have also agreed on was to reactivate and re-energize our Indonesia-Philippines Business Council. We will take a direct hand in activating this. And hopefully by November or December, we will have a significant official forum in Indonesia—something more substantial and bigger to tackle cooperation and trade issues,” he further said.