Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin), through its Division for International Affairs, convened another session of its Monthly Economic Diplomacy Meeting at Aryaduta Hotel, Jakarta, on Friday, July 11, 2025.

This edition of the forum explored cooperation opportunities that leverage Timor-Leste’s low export tariffs to the United States (US), including potential re-export schemes from Indonesia via Timor-Leste to enhance global market competitiveness.

In his opening remarks, Andi Anzar Cakra Wijaya, Vice Chair for Multilateral Diplomacy at Kadin Indonesia, representing Kadin Indonesia Chairman Anindya Novyan Bakrie and Vice Chair Coordinator for International Affairs James T. Riady, emphasized the strategic importance of the forum in strengthening long-standing economic ties between Indonesia and Timor-Leste.

Andi Anzar highlighted that the decades-long close relationship between the two nations provides a solid foundation for fostering more balanced trade cooperation.

“We’ve learned a great deal from our shared journey as brothers over the past decades. Today, we are presented with a unique opportunity. As mentioned earlier, the ‘Trump tariffs’ applied globally may be turned into a mutual opportunity. This is what we are currently exploring with Timor-Leste,” he explained.

He also addressed the current trade imbalance, noting that Indonesia currently maintains a trade surplus with Timor-Leste.

“While Timor-Leste is currently running a trade deficit with Indonesia, as close neighbors and long-time partners, it’s only right that we work together to move toward a more balanced trade relationship,” he added.

Meanwhile, Nino Filipus Pereira, Minister of Commerce and Industry (MCI) of Timor-Leste, expressed his country’s openness to Indonesia capitalizing on its low export tariffs to the US-currently at just around 10 percent.

“Through this collaboration, we hope Indonesian businesses can use Timor-Leste as a transit hub for exports to the US, enabling both sides to reap greater economic benefits,” Nino stated.

Beyond re-export opportunities, Timor-Leste is also offering potential cooperation in sectors such as industry, agriculture, fisheries, and the development of new industrial zones.

“We have significant potential as we are in the early stages of developing industrial areas. This presents an attractive opportunity for Indonesian investors,” Nino continued.

He further noted Timor-Leste’s intention to begin exporting its products to Indonesia to help narrow the existing trade gap.

“Although we currently face a trade deficit, there’s a growing desire for Timor-Leste’s products to enter the Indonesian market, which would help reduce the trade imbalance,” Nino concluded.

Also speaking at the event, Fuad Bawazier, President Commissioner of Mining Industry Indonesia (MIND ID), highlighted the importance of Indonesia learning from China’s transformation—shifting from a consumer market to a robust global producer.

Fuad referenced how China, initially projected by the World Bank to be merely a consumer market in what was predicted to be the ‘Asian Century,’ defied expectations.

“What began as a plan to make China a consumer economy evolved into something far greater—they transformed into a powerful producer. They went from making lighters and umbrellas to leading in advanced industries,” Fuad asserted.

The event was attended by a number of key Kadin Indonesia executives, including Carmelita Hartoto (Vice Chair Coordinator for Infrastructure and Regional Development), Juan Permata Adoe (Vice Chair Coordinator for Export Development), Ali Said (Vice Chair for Infrastructure and Business Facilities), Taufan Eko Nugroho Rotorasiko (Vice Chair for Organizational Affairs), Thomas Jusman (Vice Chair for Strategic Infrastructure, Rural Development, and Transmigration Areas), Rifda Ammarina (Vice Chair for MSME Marketing, Promotion, Innovation, and Product Development), Devi Erna Rachmawati (Vice Chair for Agriculture), and Sharmila Yahya (Vice Chair for Collaboration and Funding Potential Development), as well as provincial Kadin chairpersons from across Indonesia.