Thursday, January 14, 2010

Indonesia’s Export Target Increase 10 Percent to Egypt

indonesia egypt export

Indonesia is targetting to increase the export value of 10% to Egypt this year. That's because the Indonesia and Egypt has agreed to increase bilateral trade and investment between the two countries on five industrial sectors, namely construction, textiles and textile products, automotive, fertilizer, and food processing. This presented by the Indonesia Minister of Trade Mari Elka Pangestu, after she received a visit from Egypt Minister of Trade and Industry Rachid Mohamed Rachid Egypt in Jakarta, Wednesday (13 / 1).

The meeting will also bring together 15 business delegates from Egypt for the construction industry, automotive, fertilizer, pharmaceuticals, furniture, food processing, and banking services. Increasing the export is one step of Indonesia to reach the Egyptian market. Moreover, Egypt will be entering a custom union between the United States with Saudi Arabia.

Projected increase in exports especially to increase on construction products and services.This is because Egypt is currently intensively accelerate construction projects in three major cities, one of which was in southern Cairo. Construction services will continue to be a primadonna because materials and furniture from Indonesia has good quality.

In addition, Mari Pangestu said, so far Egypt has been a strategic trade partner for Indonesia. Total trade in Indonesia and Egypt during the 2004-2008 period increased to 45.2%. In 2008, total trade between the two countries reached U.S. $ 1 billion. Indonesia's export value of U.S. $ 790.7 million and Indonesia’s import U.S. $ 210 million. For the period January-October 2009, total trade between the two countries amounted to U.S. $ 632.5 million. Details, the value of Indonesian exports recorded U.S. $ 555.1 million and imports worth U.S. $ 77.4 million.

Mari says, to boost the exports, the government will contribute to involve banks. Special banking especially for export sector in Egypt it will be holding Indonesian Export Financing Institutions to increase cooperation in the export transaction services. "So far, banks still become the largest export constraints. Until now, no specific banks that facilitate transactions Indonesian exports to Egypt," she said.

Rachid claimed optimistic prospects for increased trade between the two countries can be realized. Egypt also has agreed to increase investment and trade for the dominant sectors. So far, the main Egyptian exports to Indonesia are manufactured fertilizer, raw fertilizer, cotton, heavy machinery, and leather tonhed. Chairman of the Standing Committee of the Middle East and OKI Chamber of Indonesia Commerce and Industry, Fachry Thaib said through commitment of this bilateral trade cooperation, the Chamber of Commerce estimates that increased trade between the two countries will reach U.S. $ 2 billion in the next two years. The increase was due to Egypt have expressed interest in investing in Indonesia for the development and construction phosphate factory.

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