Leading Products from Indonesia and China Improve Market Access

Leading Products from Indonesia and China Improve Market Access

Leading Products from Indonesia – Indonesia continues to strive to increase trade with the People’s Republic of China. One of them is through opening market access, both bilateral and multilateral. The Indonesian government continues to strive to increase trade with the People’s Republic of China. One of them is through opening market access, both in a bilateral and multilateral framework.

 

Increased Trade With China

These efforts were discussed in a meeting between the Indonesian Government Delegation led by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, and the People’s Republic of China Government Delegation led by the Chinese Minister of Foreign Affairs, Wang Yi. The meeting took place in the Lake Toba area, Parapat, North Sumatra.

 

Indonesia and China Trade Agreement

The meeting with the Chinese Government Delegation went well and we conveyed several trade barriers for Indonesian products to enter the PRC market as well as the continuation of existing trade agreements with China, both bilateral and multilateral, “said Deputy Minister of Trade of the Republic of Indonesia, Jerry Sambuaga, in his official statement.

How to Make and Produce Crude Palm Oil in Indonesia?

According to Jerry, during the meeting, the Indonesian Government conveyed to the Chinese Government to open wider market access for Indonesian products, including porang (konjac chips), fresh pineapple fruit, swallow’s nest, live aquatic animals (human consumption, ornamental, and breeding), and frozen aquatic animals.

 

Indonesian Konjac Products Discontinued by the Chinese Government

During the meeting, continued Jerry, the Indonesian Government expressed its hope to get support from the Chinese Government regarding Indonesian Konjac products whose access was terminated by the Chinese Government on June 1, 2020. Indonesian Konjac products were deemed not to meet the food safety provisions set by China.

 

However, Indonesia has conducted and submitted a Questionnaire for Risk Assessment of Konjac Chip from Indonesia to the General Administration of Customs China (GACC) through a diplomatic note since September 24, 2020.

 

For China to Open Access to Indonesian Konjac Products

For this reason, through this meeting, the Indonesian Government hopes for the support of the Chinese Ministry of Foreign Affairs to accelerate its review of the risk assessment proposed by Indonesia and re-open access to Indonesian Konjac products added Jerry.

 

As for Indonesian fresh pineapple products, the Indonesian government hopes that the process of resolving the issue of opening access to the market for pineapple from Indonesia can be accelerated because it has been delayed for more than four years.

 

Indonesia Expects Support from the Chinese Government

The Indonesian government hopes for the support of the Chinese government so that the two countries can sign the export protocol in 2021. This is because market access for fresh fruit products from Indonesia to China is still very limited. “There are five types of fruit that can enter China, namely salak, mangosteen, dragon, banana, and longan/longan,” said Jerry.

 

Regarding the opening of market access for live aquatic animal products (for human consumption, ornamental purposes, and breeding), the Government of Indonesia hopes for the support of the Chinese Government so that the two countries can immediately complete the discussion on ‘Protocol on Inspection and Quarantine Requirements for the Exit-Export of Aquatic Animals’ so that can be signed this year.

 

 

Indonesia for the Registration of Aquatic Animal Exporters

It is also hoped that the Indonesian Government’s proposal for the registration of live aquatic animal exporters from Indonesia can be processed immediately by GACC. In addition, Indonesia hopes that the issue of non-tariff barriers for frozen seafood products to the Chinese market can be resolved immediately.

 

Meanwhile, regarding swallow’s nest products, the Government of Indonesia proposes that the Chinese Government can provide technical guidance for Indonesian swallow nest companies so that they can meet the capacity and export requirements to China. Indonesia ranks first as a country that exports swallow’s nest to China with a market share of 75.3%.

 

Chinese Swallow’s Nest From Indonesia

The import value of Chinese swallow’s nest from Indonesia in the January-November 2020 period reached USD350.93 million, or an increase of 88.6% from the same period in 2019 which reached USD186.07 million.

 

We hope that in 2021 the Chinese government can open wider access to Indonesian swallow’s nest products and pineapple fruit to meet the high demand of the Chinese community, “continued Jerry.

Indonesian Konjac Chips Export, Foreign Demand Increases

Indonesia and China formed a Working Group on Trade

Regarding trade cooperation, Deputy Minister of Trade Jerry also revealed that Indonesia and China agreed to form a Working Group on Trade (WGT) to establish and increase bilateral trade between the two countries. In addition, the Regional Comprehensive Economic Partnership (RCEP) which was signed on November 15, 2020, is also expected to provide opportunities for the two countries to increase trade volume.

 

Indonesia’s Non-Oil and Gas Exports to China

The total value of trade between Indonesia and China for the January-November 2020 period reached USD63.39 billion. The value of Indonesia’s non-oil and gas exports to China in that period reached USD26.61 billion, an increase of 12.79 percent compared to the same period in 2019 with a value of USD23.59 billion. Indonesia’s main non-oil and gas exports to China are iron/steel, palm oil, and coal.

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