Aim North African Markets Market, Trade Minister Direct Leads to Tunisia and Morocco

INDUSTRY.co.id - Jakarta, Trade Minister Enggartiasto Lukita directs a series of trade missions to Tunisia and Morocco on 24-28 June 2018. The implementation of trade mission to Morocco synergizes with the Fes Meknes Economic Forum (FMEF) in the city of Fez.

Trade Minister Enggartiasto said the trade mission is part of a commitment to continue marketing Indonesian products to potential regions, one of which is North Africa.

"Tunisia and Morocco are expected to become a hub for Indonesian products in the African region, especially Northern Africa and the European Union," explained Minister Enggar, in a press conference in Jakarta yesterday.

Tunisia, said Minister Enggar, has signed a Free Trade Agreement with the European Union since 2008, allowing tariffs from Tunisia to Europe to 0 percent. This can be used by Indonesia to export its products to Europe through Tunisia.

"In this way, Indonesian products will become more competitive in the European market," said the NasDem Party politician.

Indonesia will also resume bilateral talks with Tunisia on a Preferential Tariff Agreement (PTA). This negotiation is quite important because Indonesia's exports to this country are hampered by relatively high import duties, whereas its products are quite attractive.

Indonesia's trade mission to Tunisia followed 21 business people from 11 companies from various business sectors. Indonesia offers palm oil, coconut, cocoa, coffee, food and beverage products, spices (nutmeg, pepper, clove), medical equipment, jewelry, furniture, building materials, military products, tires and rubber.

Indonesia-Tunisia trade has been happening in the non-oil and gas sector only. In 2017, Indonesia exported non-oil / non-gas products to Tunisia amounted to USD55.19 million. Meanwhile, non-oil and gas imports from Tunisia in the same year reached USD 32.77 million.

"We are still a surplus of USD 22.42 million," said Minister Enggar.

Indonesia's main export products to Tunisia are palm oil and its derivatives are 58.2 percent; coconut oil and its derivatives / copra (5.3 percent); palm kernel (10.5 percent); synthetic filament yarn (2.4 percent); synthetic fiber yarn (2.75 percent); lysine (3.34%).

While the import of Indonesia from Tunisia, among others, dates are 59.47 percent); calcium hydrogenorthophosphate (5.63 percent); calcium phosphates (9.83 percent); electrical switches (7.17 percent); and sheepskin (2.51 percent).

While the trade mission to Morocco coincided with the event Fes Meknes Economic Forum (FMEF) in the city of Fez. The mission was attended by 35 business actors from 18 companies and local governments of West Sumatra.

Meanwhile, the Director General of National Export Development, Arlinda said that there are still not enough Indonesian products entering the Tunisian market, although this country is a potential export destination market.

According to Arlinda, interaction between business actors from both Tunisia and Morocco will also continue to be improved. One of them through business matching activities.

Bilateral trade between Indonesia and Morocco in January-March 2018 was recorded at USD43.2 million. This value increased 22 percent compared to the period of 2017 which amounted to USD35, 30 million. Total trade between the two countries in 2017 amounted to USD 154 million, or decreased 2 percent compared to 2016 which was recorded at USD157 million.

Indonesia's exports to Morocco were recorded at USD 85 million. Meanwhile, Indonesia's import from Morocco was recorded at USD 68 million.

Major Indonesian products exported to Morocco include synthetic staple fiber, coffee, motor vehicles, animal and vegetable oils, and lysine. While Indonesia's main import products from Morocco include phosphates, clothing, copper, transistors, and footwear.