Malaysia Indonesia Agree On Reciprocal Green Lane

In order to stimulate bilateral trade during the pandemic, the approach has to be customised and carefully managed, in this principal Malaysia and Indonesia have agreed to implement the reciprocal green lane (RGL) scheme to start economic activity with the nation once again.

Prime Minister, Tan Sri Muhyiddin Yassin is on an official trip to Indonesia, his first overseas trip since assuming the leadership role. Leaders from both nations will be having serious discussion on a number of items including on palm oil, the haze and green lanes to kick starting bilateral trade. According to Foreign Affairs Ministry Secretary General Datuk Seri Muhammad Shahrul Ikram Yaakob on the RGL, he said although in principal its a go, there will be further fine tuning on the SOP before any cross border travel will be allowed.

Once both parties agree on the SOP and approval from the respective authorities, will only then the scheme will be implemented. As highlighted the RGL will not be open to all as it is only to facilitate travel for government officials and investors from both countries, this is to enhance trade particularly in regard to high value dealers.

Malaysia had RGL with Singapore for a while but that has been suspended ever since Covid-19 cases surged and the MCO was implemented. However, Indonesia is also an important trading partner being the ninth largest globally and the third largest among ASEAN countries.

In 2020, total trade reached RM66.17 billion (US$15.7 billion), while Malaysia’s total investment in Indonesia is the second largest in the republic at US$1.04 billion.

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