JAKARTADAILY.ID – Indonesia and Egypt have signed a counter-trade agreement that is expected to boost trade between the two countries. The signing took place on Sunday, May 14, 2023, during the Indonesia-Egypt Business Forum in Cairo, Egypt, and was witnessed by Indonesian Trade Minister Zulkifli Hasan.
The counter-trade contract was signed by PT Indonesian Trading Company (PT PPI) and Al Postan for General Import & Export, resulting in a transaction worth USD 105,000. The products being exchanged are coffee from Indonesia with grapes and/or pomegranates from Egypt.
Trade Minister Zulkifli Hasan expressed his optimism that the counter-trade contract will increase Indonesia's exports to Egypt and enhance bilateral trade.
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He said, "The signing of this counter-trade contract is expected to be an additional driving force for increasing Indonesia's exports to Egypt which in parallel can increase trade between the two countries."
In addition to the counter-trade agreement, PT PPI will also sign a Memorandum of Understanding (MoU) with Al Sahl, who will serve as the BP in Egypt, on May 15. The two parties will discuss the products to be exchanged and the transaction value.
The Director General of Foreign Trade of the Ministry of Trade, Budi Santoso, emphasized that business-to-business counter-trade transactions are one of the ministry's priority programs for national economic recovery and increased exports.
He said, "The counter-trade transaction between Indonesia and Egypt is the first transaction (pilot project) carried out through counter-trade since the counter-trade transaction with Thailand in 1996."
From January to March 2023, Indonesia's total trade with Egypt was recorded at USD 432.90 million, while in 2022, Indonesia's total trade with Egypt was recorded at USD 1.57 billion. This value consists of Indonesia's export value to Egypt of USD 1.34 billion and Indonesia's import value from Egypt of USD 0.23 billion. Indonesia's trade balance is a surplus of USD 1.11 billion.
The Export Special Assignment Committee, consisting of the Ministry of Finance, the Ministry of Trade, the Ministry of Industry, the Indonesian Export Financing Agency (LPEI), and PT PPI, also held a benchmarking of export transactions through the trade-off scheme in Egypt from May 13-17, 2023.
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The benchmarking aimed to gather information regarding counter-trade practices in Egypt and hold several meetings with the Executing Agency in Egypt, the banking sector, and the Egyptian government.
During a meeting with the Foreign Trade Agreement Sector/TAS at the Egyptian Ministry of Trade and Industry, the Indonesian delegation exchanged information on experiences in counter-trade transactions and policies provided by each government.
PT PPI Director of Operations, Tri Wahyundo Hariyatno, stated that the company has been exploring trade opportunities with Egypt since the end of 2022 and is currently establishing cooperation with three companies in Egypt.
