The Minister of Trade (Mendag) Budi Santoso shared details of an agreement reached between Indonesia and Malaysia during a meeting between President Prabowo Subianto and Malaysian Prime Minister Anwar Ibrahim in Kuala Lumpur on January 27th, 2025. The two leaders agreed to strengthen strategic cooperation, particularly in trade and investment, with a focus on the palm oil industry, a key commodity for both countries. Mendag Budi highlighted that President Prabowo emphasized the global demand for palm oil and expressed hopes that collaboration between Indonesia and Malaysia in this sector would be further enhanced. Both nations are the world's largest producers of palm oil, accounting for 80% of global production, and Budi acknowledged Malaysia’s support in boosting cooperation in this area.
In terms of trade, Malaysia is Indonesia's 6th largest export destination and 5th largest import source. In the period from January to November 2024, total trade between the two countries reached USD 21.06 billion, with Indonesia exporting USD 10.97 billion worth of goods to Malaysia and importing USD 10.09 billion from Malaysia, resulting in a trade surplus of USD 882 million. In 2023, the total trade value stood at USD 23.2 billion, with Indonesia recording a surplus of USD 1.7 billion. Key export items from Indonesia to Malaysia included mineral fuels, vegetable oils, vehicles, and metals, while imports from Malaysia primarily consisted of machinery, plastics, and chemicals.
