Logo Kadin Indonesia

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Indonesian and Myanmar Businesses Unite in Support of the People's Economy and the Development of Micro, Small and Medium Enterprises (MSMEs)

Indonesian and Myanmar business leaders held the Indonesia-Myanmar Roundtable Dialogue on 5 September 2023, marking a significant step towards increased trade and economic cooperation between the two countries. This landmark event took place at the ASEAN Business and Investment Summit held in Jakarta, which reaffirmed the two countries' commitment to fostering strong economic ties, focussing on supporting the Indonesian and Myanmar people's economy and advancing Micro, Small and Medium Enterprises (MSMEs).

Arsjad Rasjid, Chairman of the ASEAN Business Advisory Council (ASEAN-BAC) and the Indonesian Chamber of Commerce and Industry (Kadin), said "As ASEAN progresses to become a growth centre, we try to make sure no one is left behind. We see a lot of cooperation between Indonesia and Myanmar in various industries" (5/9/2023).

According to data from the OEC in 2021, Myanmar's exports to Indonesia were worth $171 million, which included key products such as Dried Nuts ($99.8 million), Fine Copper ($23.5 million), and Raw Lead ($21.5 million). On the other hand, Indonesia's exports to Myanmar reached $1.2 billion in 2021, led by Palm Oil ($827 million), Baked Goods ($39.8 million), and Nitrogen Fertiliser ($36.8 million). The annual growth rate of Indonesia's exports to Myanmar increased rapidly by 12.2%, rising from $60.4 million in 1995 to $1.2 billion in 2021.

The roundtable discussion looked at promising trade and investment cooperation in various sectors, ranging from Fast Moving Consumer Goods (FMCG), garment manufacturing, and collaboration in energy. Recognising the challenges faced by both countries, the dialogue also highlighted issues related to access to finance and trade payments. Both parties committed to collectively explore regional strategies aimed at enhancing the financial framework.

Chairman of ASEAN-BAC Myanmar and President of the Union Federation of Myanmar Chambers of Commerce and Industry (UMFCCI), Aye Win, expressed his deep appreciation to the Chamber for its engagement and support. He added "economic stability is key, not only for Myanmar but also for ASEAN to set the momentum for regional integration."

A Memorandum of Understanding (MOU) was signed between Kadin and UMFCCI to reinforce the collective commitment to strengthen economic relations and foster mutual growth.

ASEAN-BAC Chairman, Arsjad Rasjid explained further, "This MoU serves as a strategic blueprint to advance our collaborative efforts. It emphasises knowledge exchange, successes, and the organisation of joint activities such as conferences and workshops. The agreement prioritises the promotion of business ventures and collaborative projects, aiming to strengthen economic ties for the people of Indonesia and Myanmar."

This landmark agreement underscores the history of trade relations between the two countries, which began in 1949. Since then, Indonesia has strengthened its status as Myanmar's third largest trading partner in ASEAN.

An important part of this partnership is trade in key commodities. Indonesia, a major exporter of palm oil, plays an important role in ensuring food security for many communities in Myanmar. Similarly, the export of green gram from Myanmar, which is a staple food of Indonesia, highlights the symbiotic nature of the trade relationship. Moreover, the dialogue stressed the importance of addressing food security needs while exploring opportunities for deeper cooperation in agricultural trade, food processing, and agribusiness.

###

Indonesia's Economy Strong to Face Middle East Crisis
Kadin: Weakening of Rupiah Exchange Rate Must Be Anticipated Immediately
Eid Holiday Does Not Disrupt Company Productivity

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry