Middle East Seeks to Boost Strategic Trade With Indonesia

Indonesian Trade Minister Budi Santoso announced that several Middle Eastern nations are seeking to strengthen trade cooperation with Indonesia, spurred by the success of the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates.

Strengthening Indonesia Middle East Trade Cooperation

Speaking at the Indonesian Chamber of Commerce and Industry (Kadin) National Coordination Meeting on Trade in Jakarta, Minister Santoso explained that the UAE agreement has served as a catalyst for other regional countries to explore similar partnerships.

The Minister noted that geopolitical conditions in the Middle East have negatively impacted export performance. From January to February 2026, exports from Indonesia to the region declined by 13 percent.

Despite this dip, the government continues to promote the expansion of export markets through international trade agreements. Indonesia also maintains key markets, including the United States, which contribute significantly to the national trade surplus.

Industrial and Export Structure

Indonesia’s export profile is heavily driven by the processing industry, which accounts for 80 percent of total exports. Mining accounts for 10 percent, while the remaining 10 percent is split between the agricultural and oil and gas sectors.

On the import side, auxiliary raw materials dominate at 70 percent, followed by capital goods at 8 percent and consumer goods at 8 percent.

Minister Santoso stated that the majority of imports are used for industrial processes that ultimately fuel exports, indicating that the national economic ecosystem is functioning effectively.

To sustain this growth, the government is implementing strategies to secure the domestic market, expand international export reach, and enhance the global competitiveness of local products.