"The Indonesian government considers that the Netherlands has a strategic value as one of the entrances for Indonesian products to the European market, especially for superior products from East Kalimantan, such as crude palm oil (Crude Palm Oil) and its derivatives, as well as wood products," Deputy Minister of Commerce Jerry Sambuaga stated here on Thursday.
Sambuaga made this statement while giving a speech at a dialogue forum titled "Strengthening the Global Value Chains of East Kalimantan Industry in the Economic Partnership between Indonesia and the Netherlands."
The Dialogue Forum was held as an agenda for the working visit of the Parliamentary Cooperation Agency of the Regional Representatives Council of the Republic of Indonesia (BKSP DPD RI) in Balikpapan.
"Hence, this trade relationship needs to be further improved, given that the Netherlands is a member of the European Union. We hope that the Netherlands can become a gateway and bridge for Indonesia's trade with other European Union countries," Sambuaga remarked.
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He said that East Kalimantan occupies the eighth-largest ranking as Indonesia's non-oil and gas exporter to the Netherlands. The value of East Kalimantan's non-oil and gas exports to the Netherlands during the January-July 2022 period had reached US$135.8 million, up 68.5 percent from the previous year.
Sambuaga also lauded the BKSP DPD RI for holding the dialogue. The Ministry of Trade is optimistic that the forum would encourage East Kalimantan's efforts to become an important part of Indonesia's global value chain.
"To optimize the trade partnership between Indonesia and the Netherlands, the government needs cooperation and support from all stakeholders, including the support of the DPD and stakeholders in the East Kalimantan region," he stated.
Deputy Minister of Trade Sambuaga remarked that one of the agendas put forth by Indonesia at the G20 2022 presidency is global value chains. The agenda discussed efforts to encourage economic growth through participation in increasing the competitiveness of micro, small, and medium enterprises (MSMEs) and the industrial sector in Indonesia in the global value chain network. In addition, the agenda discussed the importance of developing a sustainable global value chain.
The G20 is also a strategic forum for Indonesia to voice its national priority agenda and the interests of developing countries. Hence, there needs to be a common understanding between G20 member countries in creating a global value chain that provides benefits and increases the participation of all stakeholders, especially in the context of national and global economic recovery.
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The forum in Balikpapan was attended by Deputy Governor of East Kalimantan Hadi Mulyadi, Chairman of BKSP DPD RI Sylviana Murni, Deputy Chairperson of DPD RI Mahyudin, and Head of the Economic Department of the Dutch Embassy Jakarta Natasja van der Geest.
Meanwhile, based on data from the Trade Ministry, the Netherlands is the 12th destination for Indonesia's non-oil and gas exports. In terms of imports, the Netherlands is the 26th country of origin for Indonesia's non-oil and gas imports. With regard to the trade performance with the Netherlands, Indonesia recorded a surplus during the 2017-2021 period. In 2021, the trade surplus had reached US$3.78 billion, the highest in the last five years. During the January-July 2022 period, the trade surplus was also higher on an annual basis and had reached US$2.9 billion.
The main products of Indonesia's non-oil and gas exports to the Netherlands include chemical products, CPO and its derivatives, organic chemicals, dregs and leftovers from the food industry, as well as footwear. Indonesia's non-oil and gas imports from the Netherlands include mechanical machinery/aircraft, pulp, plastic and their derivatives, electrical machinery/equipment, as well as dairy and butter products.
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