ASIATODAY.ID, JAKARTA — Indonesia is turning Saudi Arabia’s latest import tariff adjustments into an opportunity to strengthen its trade position in the Middle East, as Jakarta encourages exporters to move toward higher-value products and deeper economic cooperation with Riyadh.
The Indonesian Ministry of Trade said the new Saudi tariff policy should be viewed not only as a challenge but also as a strategic opportunity for Indonesian businesses to expand market access in one of the world’s most important consumer markets.
Indonesia’s Trade Attaché in Riyadh, Zulvri Yenni, expressed confidence that Indonesian exporters can remain competitive by improving product quality, strengthening efficiency, and developing products that meet international standards.
“Saudi Arabia’s tariff changes should be seen as an opportunity to create new market opportunities. Indonesia still has significant potential to expand exports of value-added food and fisheries products, particularly commodities that are not sufficiently produced by Saudi Arabia’s domestic industries, such as shrimp crackers,” Zulvri said.
Saudi Arabia introduced tariff adjustments through Minister of Finance Decision Number 1447-88-10, issued on June 15, 2026, which came into effect on June 26, 2026. The regulation covers 51 commodities across agriculture, livestock, fisheries, and food products, including live animals, meat, fish, shrimp, dairy products, eggs, fruits, flowers, and processed agricultural goods.
The policy is part of Saudi Arabia’s efforts to support domestic agricultural development while maintaining compliance with its commitments under the World Trade Organization (WTO).
However, Indonesia sees broader opportunities emerging from the policy shift. As Saudi Arabia accelerates food security initiatives and strengthens its agriculture and aquaculture sectors, demand is expected to grow for supporting industries, including cultivation technology, cold chain systems, animal feed, seeds, and related services.
“These developments can become a new platform for cooperation between Indonesian and Saudi businesses,” Zulvri said.
The Ministry of Trade emphasized that competitiveness will depend on Indonesia’s ability to deliver quality, innovation, and added value.
“Indonesian products can continue to compete in the Saudi market as long as they meet quality requirements. Exporters need to improve cost efficiency, comply with food safety standards, and develop innovative products with higher added value,” Zulvri added.
The Indonesian government will continue monitoring Saudi Arabia’s tariff developments while coordinating with the Indonesian Embassy in Riyadh to assess potential impacts and identify new export opportunities for Indonesian businesses.
Indonesia–Saudi Arabia Trade Continues to Expand
Economic ties between Indonesia and Saudi Arabia have shown steady growth. During January–May 2026, bilateral trade reached US$2.19 billion, with Indonesia’s exports accounting for US$843 million.
In 2025, total trade between the two countries reached US$6.53 billion, with Indonesian exports valued at US$2.88 billion.
Indonesia’s major exports to Saudi Arabia include vehicles and automotive components, animal and vegetable fats and oils, vessels, processed food products, as well as wood and wood-based products.
Amid Saudi Arabia’s economic transformation agenda under Vision 2030, Indonesia sees opportunities to expand cooperation beyond traditional trade, including food security, technology partnerships, supply chain development, and sustainable economic collaboration. (AT Network)
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