A robust trade partnership Indonesia ’ s trade relationship with Malaysia is robust and multifaceted , encompassing a wide range of product categories
14
Business
@ Halal | SEPTEMBER-OCTOBER . 2023
A robust trade partnership Indonesia ’ s trade relationship with Malaysia is robust and multifaceted , encompassing a wide range of product categories
INDONESIA HAS been actively engaged in trade with Malaysia , with imports from Malaysia reaching an impressive total of US $ 12.48 billion . Within this substantial trade relationship , 20 specific categories of high-quality Malaysian products have captured the attention of the Indonesian market .
At the forefront of Indonesia ’ s imports are mineral fuels and their derivatives , a category that has seen remarkable growth . Over four years , from 2018 to 2022 , these imports surged by a substantial 28 per cent , reaching a staggering total of US $ 6.3 billion .
This remarkable upward trajectory signifies a robust demand for mineral fuels , mineral oils , distillation products , and related products within the Indonesian market .
These energy resources are essential to meet Indonesia ’ s needs and power its expanding economy between both countries .
Following closely behind , the second and third most imported categories are machinery and plastic products , along with their derivatives .
Although these categories are valued at US $ 951 million and US $ 906 million , respectively , their import growth has not been particularly significant during the specified period .
Nevertheless , these products remain essential to various industries within Indonesia , contributing to its manufacturing and infrastructure development .
Moving down the list , the fourth , fifth , and sixth positions are occupied by organic chemicals , electrical machinery , and iron and steel . While organic chemical imports experienced an eight per cent growth , imports of electrical machinery , iron , and steel witnessed a two per cent decrease .
The combined import value for these products falls within the range of US $ 406 million to US $ 760 million , underlining their importance to the Indonesian economy .
Organic chemicals find applications in various sectors , including pharmaceuticals and agriculture , while electrical machinery , iron , and steel are vital for infrastructure and industrial activities .
Beyond these categories , seven additional product categories displayed positive import growth . These include aluminium ( four per
cent ), cereals ( nine per cent ), articles of iron or steel ( one per cent ), paper and paperboard ( three per cent ), copper ( 21 per cent ), optical products ( one per cent ), and animal , vegetable , or microbial products ( seven per cent ).
These growth rates reflect the diverse nature of Indonesia ’ s import market and its expanding needs across different sectors .
Conversely , some product categories experienced declines during the specified period .
These include miscellaneous chemical products ( negative six per cent ), miscellaneous edible preparations ( negative one per cent ), vehicles ( negative seven per cent ), cocoa ( negative 10 per cent ), rubber ( negative four per cent ), and beverages ( negative one per cent ).
Despite these declines , it is worth noting that these categories still hold significant potential within the Indonesian market .
The declines could be attributed to various factors , such as changes in consumer preferences or market dynamics . Still , they do not diminish the long-term prospects of these products within Indonesia ’ s diverse and evolving economy .
In summary , Indonesia ’ s trade relationship with Malaysia is robust and multifaceted , encompassing various product categories .
From the considerable demand for mineral fuels to the importance of machinery , chemicals , and steel , this trade partnership reflects Indonesia ’ s economy ’ s growing and dynamic nature .
While some categories experienced declines , they remain poised for future growth , highlighting the resilience and adaptability of Indonesia ’ s import market .
Indonesia ’ s primary imports from Malaysia include petroleum oil , acyclic hydrocarbons , polymers of ethylene , machine tools , and acyclic alcohol , which collectively play a pivotal role in sustaining the nation ’ s development and industrialisation . –