Indonesia and Malaysia Agree to Boost Trade and Investment
The Minister of Trade, Budi Santoso, met with Malaysia’s Minister of Investment, Trade, and Industry, Datuk Seri Johari Abdul Ghani, during the Joint Trade and Investment Committee (JTIC) forum. This ministerial-level meeting was reconvened after a nine-year hiatus.
Minister of Trade Budi Santoso stated that the JTIC forum serves as a vital platform to ensure that various bilateral agreements are followed up and provide tangible benefits to the economies of both nations. “We greatly appreciate the cooperation and constructive discussions established during this meeting. Today’s meeting has resulted in several understandings and mutual commitments,” Buju said at the Ministry of Trade on Thursday (3/9/2026).
There were five main points agreed upon during the forum. First, a strong commitment to strengthening bilateral trade and investment cooperation through relevant mechanisms. Second, a focus on the effective implementation of the Border Trade Agreement (BTA) and support for economic connectivity in border regions.
Third, market access and trade facilitation for both countries, including agricultural and food products, to resolve existing barriers. Fourth, a commitment to encouraging a conducive investment climate. Fifth, the continuation of cooperation in other strategic sectors such as e-commerce, agriculture, and Halal standardisation.
Malaysia’s Minister of Investment, Trade, and Industry, Datuk Seri Johari Abdul Ghani, noted that many important issues for both countries were discussed during the meeting. “One of them is the Border Trade Agreement that we signed in 2023, which will come into effect in July 2026. We hope this border agreement can facilitate many economic activities between our two nations,” said Johari.
Johari also highlighted a crucial topic of concern for business players in his country, namely the policy on export proceeds (DHE) from natural resources implemented by the Indonesian government. Although it had previously raised questions within the business community, Johari emphasised that Malaysia now understands the intent and purpose behind the policy. He ensured that investors and businesspeople from Malaysia are prepared to comply with it.
“As the Malaysian business community, we will support such policies, whatever is good for Indonesia. If we wish to come here to do business, we will continue to comply with the prevailing policies in Indonesia,” he added.
Furthermore, the meeting revealed the trade balance between the two nations. Last year, total trade between Indonesia and Malaysia reached 114 billion Ringgit. Johari also mentioned that between 2023 and 2025, Malaysia has invested approximately 70 billion Ringgit into Indonesia consecutively. “We have brought investments to Indonesia of around 70 billion Ringgit. That value is equivalent to about 17 billion US dollars over nearly three years,” he explained.