Malaysia, Indonesia eye further growth in RM114bil bilateral trade - Johari

Johari Abdul Ghani, Malaysia's Investment, Trade and Industry Minister, highlighted the significant potential for expanding bilateral trade between Malaysia and Indonesia during the fourth Malaysia-Indonesia Joint Trade and Investment Committee (JTIC) meeting in Jakarta. The pair emphasized the need to strengthen trade facilitation and improve cross-border goods movement to boost transaction volumes, aiming for a quadrupling of trade.

Last year, Malaysia exported RM51 billion and imported RM62.6 billion worth of goods to Indonesia, with trade increasing by 10% year-on-year to RM71.1 billion in the first seven months of 2026. The Border Trade Agreement, signed in 2023, was a key area of discussion, along with Indonesia's export policies, investment cooperation, standard requirements, and halal cooperation.

Both countries are working on technical issues related to these areas. Johari expressed optimism about Malaysia's investments in Indonesia, which reached RM70 billion between 2023 and 2025. Indonesia's new export policy, which channels strategic natural-resource commodities through a designated state-owned entity, was also discussed, with Malaysia acknowledging its rationale and willingness to comply.

Indonesia's Trade Minister, Budi Santoso, stated that they expect bilateral trade to continue rising alongside stronger investment flows, with both countries' exports to each other expected to expand. The two ministers stressed the importance of their close relationship as Asean members and shared cultural affinity in supporting bilateral trade and investment growth.