Indonesia-Egypt FTA Draws Closer, Set for Discussion at D-8 Meeting
The Egyptian government has stated that the opportunity to realise a free trade agreement (FTA) with Indonesia is increasingly open. Both countries are currently accelerating FTA discussions through the D-8 channel, which is expected to yield a concrete agreement in the near future.
Ambassador of the Arab Republic of Egypt to Indonesia, Yasser Hassan Farag Elshemy, said that discussions regarding free trade cooperation between Jakarta and Cairo have actually been ongoing for quite some time. “Indonesia and Egypt have been working on this for a long time. Jakarta hosted bilateral trade consultations in 2024, and currently we are working through a parallel track in the D-8 Free Trade Agreement, where both Indonesia and Egypt are members,” Elshemy said during the 74th National Day celebration of the Arab Republic of Egypt in South Jakarta on Wednesday (24/6/2026). “I believe we can reach a very concrete agreement in the near future,” he continued.
According to Elshemy, strengthening economic relations is one of the main focuses of the Indonesia-Egypt strategic partnership agreed upon during President Prabowo Subianto’s visit to Egypt in April 2025. The agreement elevated bilateral relations to a Strategic Partnership level, encompassing cooperation in trade, investment, education, people-to-people exchange, culture, and defence. “We look forward to an even stronger enhancement of Indonesia-Egypt relations in the near future,” he said.
Elshemy stated that Egypt views Indonesia as an important partner in the Southeast Asian region. Besides being the largest country in ASEAN, Indonesia is also expected to support Egypt’s efforts to elevate its relationship status with ASEAN to a Sectoral Dialogue Partner.
In the trade sector, palm oil remains the main commodity in bilateral trade relations. The value of Indonesian palm oil trade to Egypt reaches approximately US$1.2 billion per year, equivalent to Rp21.48 trillion. Egypt is also closely monitoring the single-window export policy implemented through Danantara Sumberdaya Indonesia (DSI). “We understand that the Indonesian government introduced this policy as part of efforts to increase transparency, improve governance of strategic natural resource exports, simplify billing systems, and strengthen state revenues,” Yasser said.
Egypt, he continued, respects Indonesia’s national economic policies and believes the main objective of the policy is to benefit the Indonesian people and economy. The most important thing for Egypt is maintaining trade flow stability so that the supply of palm oil and other commodities continues to run smoothly.
Beyond trade, bilateral relations are also being strengthened through the education sector. Currently, there are about 20,000 Indonesian students studying in Egypt. Not only in Islamic studies, Al-Azhar University is now opening wider opportunities for Indonesian students to study medicine, engineering, pharmacy, and dentistry. “We are working with the Indonesian Ministry of Health and Ministry of Higher Education so that graduates can obtain licences and practice their professions more easily when they return to Indonesia,” he explained.
Elshemy is also optimistic that the combination of economic, educational, and diplomatic cooperation will bring Indonesia-Egypt relations to a higher level. With the momentum of the agreed strategic partnership and the FTA discussions through the D-8 track, the two countries are considered to be moving closer towards a new, broader chapter of economic cooperation.