The Ministry of International Trade & Industry shared that the total trade between Malaysia and Indonesia for 2022 is likely to exceed 30% compared to 2021, as both countries fully reopened their borders in 2022, facilitating a better bilateral flow of goods and services.
Within ASEAN, Indonesia is Malaysia’s second-largest partner in trade, and third-largest source of Foreign Direct Investment (FDI). Total trade between Malaysia and Indonesia was roughly USD23 billion in 2021, a 45.5% year-on-year increase compared 2020. For the period Jan – Nov 2022, bilateral trade between both countries had already exceeded USD27 billion, approximately 33% more than the corresponding period in 2021.
In conjunction with the Prime Minister’s official visit to Indonesia, MITI and its related agencies have expressed their commitment to continue facilitating the expansion of trade and cross-border investments with Indonesia.
In terms of investments, there is more opportunity for cross-border investments between Malaysia and Indonesia, especially in areas such as pharmaceuticals, aerospace, palm oil processing, consumer goods, as well as defence and security. These were reflected in the exchanging of nine Memorandums of Understanding between Malaysian and Indonesian companies, with a total potential investment value of more than RM1.6 billion.
MITI has also spearheaded bilateral talks on Malaysia’s possible investments and co-investments in Indonesia’s planned new capital in East Kalimantan. On this, the Prime Minister also witnessed the handing over of eleven Letters of Intent by ten Malaysian companies, who have expressed interest to contribute to the development of Indonesia’s planned new capital. These companies have built their expertise and credentials in areas such as E&E, automotive, manufacturing of industrial goods, waste management, smart city technology, housing, healthcare, M&E engineering, utilities, and renewable energy.
These areas of possible mutual collaboration and benefit were discussed when MITI met with Indonesia’s Minister of State-Owned Enterprises, and the Minister of Maritime and Investment Affairs.
