LABUAN — The financial partnership between Indonesia and Malaysia is constantly advancing, marking a major strengthening of bilateral ties, stated Indonesian Ambassador to Malaysia Datuk Hermono.
He stated the bilateral commerce worth between Indonesia and Malaysia in 2022 stood at US$28.5 billion. (US$1 = RM4.71)
Nevertheless, Hermono stated he was involved that this determine may lower considerably by 20-30 per cent attributable to a noticeable drop in commodity costs, notably in coal, Indonesia’s largest export to Malaysia, adopted by crude palm oil.
“We anticipate a discount of roughly US$7 billion in commerce worth with Malaysia this 12 months.
“As of September 2023, the recorded commerce worth was US$17.5 billion, and he estimated it to succeed in roughly US$22 billion by the top of the 12 months,” he stated in an interview with Bernama after the Indonesia’s Consulate Basic Assembly at Tiara Resort Labuan right here as we speak.
He stated that regardless of challenges within the commerce sector, the tourism trade seems to be thriving.
“Malaysia is main the way in which by way of customer numbers to Indonesia, surpassing China, India, and Singapore.
“Put up-Covid-19, Indonesia has skilled a surge in Malaysian vacationers, reaching round 700,000, much like the variety of Indonesian vacationers visiting Malaysia.
“Earlier than the pandemic, Malaysia yearly contributed round 2.5 million vacationers to Indonesia,” he stated.
Hermono highlighted optimistic developments within the financial panorama, citing the relocation of Indonesia’s capital from Jakarta to Nusantara in East Kalimantan.
He stated the relocation is predicted to stimulate financial spillover to Sabah and Sarawak when the capital is relocated.
“Presently, the continuing growth tasks on the Nusantara present new enterprise alternatives for Malaysian traders within the numerous development tasks like motels, hospitals, and supporting amenities, amongst others,” he stated.
Whereas the Indonesian financial system is on an upward trajectory, with a give attention to digital transformation, Hermono acknowledged that Indonesia’s upcoming elections in February 2024 have led to a wait-and-see method from international traders on future investments.
“Strengthening financial bilateral ties stays a prime precedence for President Jokowi Widodo, reflecting the dedication to fostering a sturdy partnership between Indonesia and Malaysia,” he added. —BERNAMA