Malaysia, Indonesia push to realise untapped trade potential

New Straits Times

2 days ago

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim and Indonesian President Prabowo Subianto have called for renewed focus on unlocking the vast, yet underutilised, potential in bilateral trade and investment between Malaysia and Indonesia.
Speaking at a joint press conference during his working visit to Jakarta, Anwar said that despite close diplomatic ties and decades of cooperation, both countries have not fully capitalised on the many opportunities available across key sectors.
"My friendship with Prabowo reflects the deep bonds between our nations. For nearly half a century, we have nurtured a close personal and familial relationship built on trust, mutual respect, and a sincere spirit of brotherhood.
"The potential for greater economic cooperation is immense, particularly in trade and investment. However, we both agree that much of this capacity remains untapped.
"There is ample room for us to optimise this potential in the shared interest of our people and our longstanding friendship," he said.
Anwar said both governments are aligned in their political will to advance cooperation in areas such as the economy, education, research, culture, and investment.
"We recognise our shared responsibility to uplift the standing of our nations, whether through trade, education, innovation, or cultural exchange. As President Prabowo mentioned earlier, these are all vital areas that have been discussed.
"I fully support the President's call for pragmatic steps to enhance our country's performance, especially in the face of tariff-related challenges and global uncertainties.
"We must strengthen our domestic foundations, while expanding bilateral and Asean-level cooperation," he said.
Prabowo echoed the sentiment, affirming Indonesia's commitment to working closely with Malaysia.
"On the bilateral front, we have agreed to accelerate cooperation across all sectors, especially key areas such as the economy, trade, education, and culture.
"These are issues that both of us agree must be addressed promptly, in the interest of something far greater — the enduring friendship and close cooperation between two countries that share so much in common.
"We have a shared history, similar cultures, and many of our people even practise the same faiths. These deep-rooted ties are a strong foundation for us to work from," he said.
Anwar was on an official visit to Indonesia today, as part of the ongoing commitment by both nations to further deepen their close and longstanding bilateral relations at the highest leadership level.
The visit also formed part of the preparations for the 13th Annual Malaysia–Indonesia Consultation, scheduled to take place later this year.
During the visit, Anwar also had a private meeting with Prabowo to review key bilateral issues, follow up on the outcomes of the 46th Asean Summit, the 2nd Asean–GCC Summit, and the ASEAN–China–GCC Summit, as well as to exchange views on regional developments and global issues of mutual concern.
He was accompanied by Foreign Minister Datuk Seri Mohamad Hasan; Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz; Higher Education Minister Datuk Seri Dr Zambry Abdul Kadir; Communications Minister Datuk Fahmi Fadzil; and Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
In 2024, Indonesia was Malaysia's sixth-largest trading partner globally, and the second-largest among Asean member states.
Bilateral trade increased by 4.5 per cent to RM116.29 billion (US$25.5 billion), up from RM111.21 billion in 2023.