April 30, 2026 | 05:45 pm
TEMPO.CO, Jakarta - Indonesian Trade Minister Budi Santoso stated that countries in the Middle East have shown interest in strengthening trade cooperation with Indonesia, following the success of previous trade agreements.
At the Indonesian Chamber of Commerce and Industry (Kadin) National Coordination Meeting on Trade in Jakarta on Thursday, the Minister of Trade explained that Indonesia's success in establishing a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) has paved the way for other regional countries to explore similar agreements.
"So that's actually one way, once the UAE has succeeded with us, other Middle Eastern countries will also want to make trade agreements," he said, as quoted by ANTARA.
Budi acknowledged that geopolitical conditions in the Middle East have impacted Indonesia's export performance. From January to February 2026, exports from Indonesia to the region declined by 13 percent. However, Indonesia recorded a trade surplus of US$641 million with the region.
Indonesia's total exports to the Middle East reached $9.8 billion, accounting for 3.4 percent of the country's total exports. Forty percent of this figure went to the UAE, and 29 percent went to Saudi Arabia.
Furthermore, Budi emphasized that the government continues to promote the expansion of export markets by establishing various international trade agreements.
In addition to the Middle East, Indonesia maintains key markets, such as the United States, that contribute significantly to the national trade surplus.
The Minister of Trade stated that Indonesia's exports are structurally dominated by the processing industry, which accounts for 80 percent. Mining accounts for 10 percent, and the remaining 10 percent comprises the oil and gas and agricultural sectors.
Meanwhile, imports are dominated by auxiliary raw materials (70 percent), capital goods (8 percent), and consumer goods (8 percent).
"This means that what we import is actually for our industrial processes, most of which are also used for our exports. So, in reality, our economic ecosystem is running well," he said.
He added that the government is implementing several strategies in the trade sector. These strategies include securing the domestic market, expanding export markets, and encouraging local products to compete in the global market.
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