Enhancing Trade Relations: The Growing Economic partnership Turkey and Indonesia

Source : https://kemlu.go.id/ankara/id/news/29213/dubes-ri-ubah-mindset-untuk-capai-target-dagang-10-milyar-dolar

Turkey and Indonesia have experienced quite a growth in terms of trade relations over the past few years. The economies of both countries are dynamic and complementary as they are members of the G-20. Given their vast population and huge market potential, Indonesia and Turkey are committed to enhancing economic cooperation. This article will highlight the volume of trade, major sectors, investments, challenges, and opportunities in the trade ties of both the countries.

Trade Volume

Volume of trade between Turkey, Indonesia showing 'tremendous' increase. The two-way trade was worth 262 million USD in 2000. In 2019, this figure increased to 1.55 billion USD and Indonesia became the 48th largest trading partner of Turkey. Last year Turkey exported goods worth 289 million USD to Indonesia, but imported goods with the value of 1. This uptrend is symptomatic of the economic development in both countries and co-operation in a bid to build up trade bonds.

Export and Import

1. Turkey's Exports to Indonesia:

2. Turkey's Imports from Indonesia:

Investment and Cooperation

Apart from that, Turkey links its investment directly with Indonesia. Turkey and Indonesia have respectively 11 and 3 companies that based on these countries. The two countries are in the process of negotiating a Comprehensive Economic Partnership Agreement (CEPA), akin to a Free Trade Agreement (FTA). The deal should significantly increase trade and investment and scrap tariff and non-tariff barriers.

Challenges in Trade Relations

Even though official trade relations have increased significantly between Turkey and Indonesia, there are still some challenges that need to overcome:

On the other side, Turkey-Indonesia trade relations have also a good space to improve:

Conclusion

With the economic expansion and vast market potential of both sides, trade relations between Turkey and Indonesia strengthen. It is hoped that by overcoming the issue of tariff barriers, and increasing cooperation through various free trade agreements, bilateral trade to reach further heights in future years. This reveals a concrete willingness of the two states to back each other and make use of their economic capacities to further advance their mutual interests.