ASIATODAY.ID, CAIRO – Indonesia and Malaysia held a bilateral meeting in Cairo City to discuss investment by the two countries in Egypt and efforts to increase the volume of exports to the African country as well as joint efforts to explore the ASEAN-Egypt Free Trade Agreement (AEFTA).
The meeting took place on March 10, involving the Trade Attache of the Indonesian Embassy in Cairo, M Syahran Bhakti S with the Trade Commissioner of Malaysia, Raphy Md Radzi and Ghada Fayek, Senior Marketing Manager of the Malaysian Embassy Trade Office.
M Syahran Bhakti emphasized the importance of increasing ASEAN cooperation with Egypt in the fields of trade and investment.
“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 as competing products,” he said.
Indonesia has expanded its investment wings in Egypt with the presence of the Indomie instant noodle factory with the name Salim Wazaran Abu Alata, there are also Egyptian investments in Indonesia including the El Sewedy cable company and the Golden Coffee Company coffee company.
ASEAN countries can strengthen trade 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, which is expected to provide concrete results for improving Indonesia’s economic and trade relations with African countries, including Egypt.
Meanwhile, Raphy Md Radzi said that with the opening of the Malaysian Trade Office in Cairo covering North African and East African countries, this would open new breakthroughs in the African market, especially opportunities for the entry of Malaysian products.
Raphy added that Malaysian products currently exported to Egypt include palm oil, vegetable oil, soap, textile products, natural rubber products, cocoa powder, electronic products, chemical products, machinery and steel products.
Raphy welcomed Indonesia and Malaysia exploring initial discussions on trade and industrial cooperation efforts between ASEAN and Egypt within the AEFTA framework at the upcoming ASEAN Committee in Cairo (ACC) session.
Concluding the meeting, the Trade Attache of the Indonesian Embassy in Cairo emphasized the importance of optimism in doing business with Egypt, including taking an approach so that the use of Indonesian and Malaysian local currencies in transactions with Egypt could be raised in discussions at the Central Bank of Egypt.
Until now, the proposal to use local currency in trade transactions with India, China and Russia is in the discussion stage with the Central Bank and Egyptian Banking Parties.
“Egypt’s move is part of the government’s general direction to reduce pressure and demand for the US dollar,” said M Syahran.
Based on BPS data, total trade between Indonesia and Egypt in the December 2023 period was recorded at $1.53 billion, down 3.04% compared to the same period in 2022 which was recorded at $1.56 billion.
Indonesia’s exports to Egypt were recorded at $1.31 billion, down 1.71% from the same period in 2022 which was recorded at $1.33 billion.
Meanwhile, Indonesia’s imports from Egypt amounted to $201.4 million, down 10.9% compared to the same period in 2022 which was recorded at $226 million. Thus, the surplus for Indonesia in the trade balance with Egypt in December 2023 will be $1.11 billion.
For ASEAN countries, Indonesia ranks first in market share in Egypt. According to data from the Egyptian Bureau of Statistics (Capmas), in the January-November 2023 period the market share for Indonesian products is 2%; Thailand 0.99%; Malaysia 0.96%; Vietnam 0.74%; Singapore 0.58%; and the Philippines 0.03%. (AT Network)
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