InfoSAWIT, JAKARTA –Ministry of Trade keeps boosting the exports from Indonesia to the global markets, such as, Russia through Trade Mission which is led by Secretary of Trade, Enggartiasto Lukita on 3-5 August 2017. In the mission, the Secretary wants to emphasize and follow up the visit trade with Russian company, Rostec which wants to barter a Sukhoi SU-35 with rubber from Indonesia and also does palm oil diplomacy.
The Secretary hoped to accelerate the making of Indonesia-Russia Preferential Trade Agreement(PTA) and Indonesia-Eurasia FTA to support the balanced trade with Russia and the countries around Eurasia.
The country led by President Vladimir Putin is important to the trade relationship of Indonesia. Russia is the gate for the products from Indonesia to Eurasia Economic Union, which consists of Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. Russia is a biggest non traditional market for the product and service from Indonesia in the Central and East Europe.
Last year the trade between Russia and Indonesia reached US$ 2,11 billion. Indonesia got surplus reaching US$ 411 million. The numbers significantly increased compared to the previous trade (2015) which reached US$ 1,9 billion. The non oil and gas export from Indonesia to Russia increased 8,5% in the last five years within the exports in 2016 reaching US$ 1,3 billion.
In January to May 2017, the total trade between both countries increased 54,43% compared to the same period in last year which reached US$ 1,12 billion. Indonesia got surplus about US$ 77,45 million within the exports reaching US$ 599,97 millionandthe exports reaching US$ 522,52 million. The main export products from Indonesia to Russia are palm oil and its derivative, coffee, rubber, coconut oil, and chocolate.
Palm Oil Diplomacy
Beside that, in specific, the Trade Mission to Russia is done as a diplomacy of sustainable palm oil from Indonesia. This has been started since the visit of President Joko Widodo to Russia last year to increase the sustainable palm oil exports. “The strategy of the progress in Indonesia always notices the commitment of the government towards the environment. Indonesia clearly supports the sustainable palm oil exports,” Enggartiasto emphasized in the official statement that InfoSAWIT got.
He also noticed, it needs to increase more positive perception to the palm oil industries in Indonesia. Its goal is that the importers and the industries in Russia could directly get the whole understanding about palm oil industrial progress in Indonesia and the potential cooperation with the Russian industries.
Besides empowering the trade cooperation and investment for more than 65 years, the series of Trade Mission with Russia is done through the Palm Oil Business Forum, Indonesia – Russia Business Forum, one-on-one business matching and the visit to the Paviliun of Indonesia in the Food City. These are done to be more focus to seek the trade partners or business chances. Some agreements between the stakeholders and the associations in both countries would be signed and this becomes the signal to make good trade cooperation between both countries.
In his visit to Russia, the Secretary is scheduled to inaugurate the Festival of Indonesia on August 4th 2017 in Hermitage Garden, Moscow, Russia. The Festival of Indonesia is held as the series of the Independence Day of Indonesia the 72th. It is the second time in Russia and the Trade, Tourism and Investment(TTI)andsocial cultural promotion. The festival is arranged by the Embassy of Indonesia in Moscow in cooperation with Ministry of Foreign Affairs and Ministry of Tourism.(T2)
