The government through the Ministry of Trade (Kemendag) is committed to encouraging exports of value-added Indonesian products to the European market. One of them is through the signing of a Memorandum of Understanding (MoU) between the Ministry of Trade and the Government of Switzerland for trade promotion cooperation.
The signing of the MoU was carried out by the Director General of National Export Development, Ministry of Trade, Didi Sumedi with the Swiss Ambassador to Indonesia, Olivier Zehnder in Jakarta.
“The MoU with the Government of Switzerland is the Ministry of Trade's commitment to become the leading ministry (lead institution) in encouraging the export of value-added Indonesian products to the European market. The scope of cooperation includes capacity building, training, and knowledge transfer to the Ministry of Trade's Directorate General of National Export Development personnel which can strengthen the Directorate General of National Export Development in providing export promotion information services to business actors and ensuring aspects of sustainability, as well as digitalization in its implementation," said Didi.
Didi explained that the collaboration between the Ministry of Religion and the Swiss government is a concrete step in implementing a comprehensive economic and trade agreement between Indonesia and the European Free Trade Area or Indonesia – EFTA CEPA which has been in full effect since November 2021. "For this reason, the two countries want to strengthen an agreement that can contribute to increasing trade value," Didi added.
In implementing the MoU, continued Didi, the Swiss government gave a mandate to the Swiss Import Promotion Program or (SIPPO) as an Implementing Agency, involving multi-stakeholders such as the Ministry of Cooperatives and SMEs (KemenkopUKM), Ministry of Maritime Affairs and Fisheries (KKP), Indonesian Essentials Council, Aliasi Organis Indonesia, as well as related business associations.
The selected main export product sectors as well as lead institutions in the implementation of cooperation projects are the Ministry of Trade for processed/technical wood products, the Ministry of Cooperatives and Small and Medium Enterprises for natural ingredients, the Ministry of Trade for value-added marine products, and the Indonesian Essentials Council. for essential oils.
"These products are Indonesia's leading exports which are urgently needed in the Swiss market and other European countries. For this reason, this program is carried out to ensure the continuity of product supply for Swiss consumers. We hope that Indonesia and Switzerland can become strategic partners who complement each other's needs, both goods and services," added Didi.
Meanwhile, Swiss Ambassador Zehnder said that this agreement not only aims to increase the total trade value of the two countries, but also to strengthen a mutually beneficial strategic partnership. The main thing that must be done is transparency in trade policies for easy market access for supply chain sustainability.
Based on data from the Central Statistics Agency (BPS) processed by the Ministry of Trade, since the implementation of the Indonesia-EFTA (European Free Trade Association) Comprehensive Economic Partnership Agreement (CEPA) in November 2021, the total trade between Indonesia and Switzerland in 2022 was recorded at USD 2.75 billion, or an increase 38 percent compared to 2021. Meanwhile, Indonesia's total non-oil and gas exports to Switzerland in that period were recorded at USD 1.88 billion, an increase of 43 percent compared to the previous year.
Meanwhile, Indonesia's imports from Switzerland in 2022 reached USD 868.6 million, up 28 percent compared to the previous year.
"The Ministry of Trade will cooperate with stakeholders, the private sector, and other export-ready business actors to be able to participate in the implementation of this MoU. In the future, all participating parties are expected to play a role in optimizing the utilization of the results of the Indonesia-EFTA CEPA trade agreement," said Didi.
Previously, the Minister of Cooperatives and SMEs, Teten Masduki asked the Indonesian Furniture and Handicraft Industry Association (Asmindo) to take advantage of the exemption from import duty to Switzerland to access Swiss and European markets in general.
"The results of our meeting with SECO (Swiss Secretariat for Economic Affair), which is the most important government institution in Switzerland, have agreed that Indonesia will be Switzerland's most important trade partner," said Teten.
In fact, Teten also revealed that the Indonesia-Switzerland FTA had been ratified. "And the most important thing is the implementation by the business world," said Teten.
Meanwhile, based on statistical records for 2022, exports of processed wood products and furniture reached USD 1.4 million, an increase of more than 100 percent compared to 2021, products made from natural ingredients and essential oils were recorded at USD 6. .6 million, up 67 percent compared to the previous year, as well as fishery products worth USD 755 thousand, up 27 percent compared to 2021.
