February 10, 2023
The Minister of Trade (Mendag) of the Republic of Indonesia, Zulkifli Hasan, discussed the challenges and dynamics of global trade in palm oil and natural rubber commodities with Malaysian Deputy Prime Minister and Minister of Agriculture and Commodities, Dato’ Sri Haji Fadillah bin Haji Yusof.
The Minister of Trade said that he and Deputy Prime Minister Dato’ Sri Haji Fadillah Bin Haji Yusof met to discuss increasing various opportunities for cooperation that could still be explored further. The meeting discussed the attitudes of Indonesia and Malaysia in facing global challenges regarding superior commodities that both countries have in common.
In discussing the natural rubber commodity, Zulkifli conveyed the benefits of an international organization that oversaw the natural rubber commodity and welcomed Malaysia’s proposal to work together to deal with natural rubber pests and diseases that reduce productivity at the farmer level.
Therefore, the existence of organizations such as the International Tripartite Rubber Council (ITRC) and the International Rubber Consortium (IRCo) is beneficial for three countries (Indonesia, Malaysia, and Thailand).
Furthermore, the two of them agreed to push the tripartite cooperation into the scope of ASEAN by inviting other countries to join during Indonesia’s Chair in ASEAN in 2023.
According to the Minister of Trade, Indonesia and Malaysia have agreed to collaborate in formulating the ITRC and IRCo strategic programs as a substantial effort to improve the welfare of farmers and stabilize rubber prices. Meanwhile, regarding the palm oil dispute cases (DS593 and DS600), Indonesia and Malaysia can work together to take a stand on the European Union’s deforestation policy.
This joint effort can contribute to securing market access for palm oil and other products affected by EU policies. Zulkifli said that Indonesia was ready to sign the Border Trade Agreement (BTA) review between Indonesia and Malaysia as soon as possible. Indonesia encourages Malaysia’s internal processes to be completed immediately.
In addition, Zulkifli said that Indonesia was ready to host the Indonesia-Malaysia Joint Trade and Investment Committee (JTIC). Indonesia also proposed that the fourth JTIC meeting be held back-to-back with the ASEAN Economic Ministers’ Meeting in March 2023 in Magelang, Central Java. Furthermore, Zulkifli expects Malaysia’s support to succeed Indonesia’s Chairmanship in ASEAN in 2023.
Total trade between Indonesia and Malaysia in 2022 increased by 30.37% to US$27.9 billion from US$21.4 billion in 2021. Indonesia recorded a surplus of US$3.0 billion in 2022 or an increase of 18.13% compared to 2021. Malaysia is in fifth position as a destination for Indonesian exports and fourth as a country of origin for Indonesian imports.***
Source: Antaranews.com