Trade Minister Says Trade Agreements Spur Investment Interest

Trade Minister Budi Santoso has stated that the increasing number of trade agreements held by Indonesia can serve as a draw for incoming investment. According to him, the existence of trade agreements with various countries, such as the United States and the European Union, makes Indonesia more attractive to investors from other nations seeking wider market access. “So our growing number of trade agreements, including with America and later with the EU, turns out to be attracting investment,” he said after the Indonesia-Thailand Business Forum in Jakarta on Tuesday. According to Budi, countries that do not yet have trade agreements with the United States or the European Union will see Indonesia as a strategic location to enter those target markets. “Because many countries that do not have trade agreements with America, do not have trade agreements with the EU, their market access is not easy,” he explained. “Therefore, they invest in Indonesia to penetrate the European and American markets,” he added. Furthermore, Budi conveyed that the American market remains one of Indonesia’s largest export destinations, with a value of approximately 18.11 billion US dollars in the previous year. “This means our largest surplus is still with America, number two is India, and the American market accounts for 11.1 percent. This means we really need the American market,” he said. He emphasised that the trade agreement with the United States is a major opportunity that Indonesia must leverage, given the enormous potential of that market. “We must have an agreement with America because our market there is very large, as evidenced by the surplus of 18.11 billion US dollars, the number one surplus,” he stated. Budi expressed optimism that Indonesia can continue to improve its export performance through appropriate strategies in facing changes in global and geopolitical conditions. He assessed that geopolitical dynamics can accelerate changes in trade patterns between countries. He added that the government is also continuing to push for the completion of several trade agreements with other countries, including the Middle East region, to expand Indonesia’s export market access.