Middle Eastern countries seek stronger trade ties with RI: Minister

  Indonesian Trade Minister Budi Santoso stated that Middle Eastern countries are showing strong interest in deepening trade ties with Indonesia, following the success of previous trade agreements.

He said in Jakarta on Thursday that Indonesia's Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) has served as a gateway, encouraging other countries in the region to explore similar agreements.

However, he noted that the geopolitical tensions in the Middle East have affected Indonesia's export performance. In the period of January to February 2026, Indonesia's exports to the region dropped by 13 percent.

Despite the decline, Indonesia maintained a trade surplus of US$641 million with the region.

Indonesia's total exports to the Middle East reached US$9.8 billion, accounting for 3.4 percent of the country's total exports. Of that figure, 40 percent was directed to the UAE, while 29 percent went to Saudi Arabia.

Santoso emphasized that the government is continuously pushing to expand export markets through various international trade agreements.

Beyond the Middle East, Indonesia is also maintaining its presence in key markets like the United States, which contributes significantly to the country's trade surplus.

The minister further noted that, structurally, Indonesian exports are dominated by the manufacturing industry at 80 percent, followed by mining at 10 percent, with the remainder coming from the oil and gas and agricultural sectors.

On the import side, 70 percent consists of raw materials and auxiliary goods, while capital goods and consumer goods each account for 8 percent.

"This means that what we import is mainly for our industrial processes, most of which are geared toward exports. Thus, in terms of the economic ecosystem, things are moving in the right direction," he asserted.

He affirmed that the Indonesian government is currently carrying out several strategies in the trade sector, namely, securing the domestic market, expanding export markets, and supporting local products to be able to compete in global markets.