Indonesia is exploring opportunities in the Suez Canal economic zone

• The aim is to boost exports through the Suez Canal, the shortest route between Asia and Europe.
• Over 8% of global trade passes through the Suez Canal annually.
• Indonesia and Malaysia recently collaborated on a free trade pact with Egypt.

After a series of ministerial-level meetings in Cairo this week, authorities have stated that Indonesia is setting its sights on cooperation with the Suez Canal Economic Zone. A delegation from Indonesia, led by Deputy Trade Minister Jerry Sambuaga, met with officials from the Suez Canal Economic Zone on Sunday to explore opportunities. Jakarta seeks to boost exports through the vital waterway, which is the shortest route between Asia and Europe.

Sambuaga said that closer cooperation with the Suez Canal Economic Zone would help Indonesia boost its exports to Egypt, as well as other parts of Africa, the Middle East, Europe, and Central Asia.

“This is in keeping with the fact that more than 8 percent of global trade goes through the Suez Canal annually … We hope that in the future, Indonesia and Egypt will have stronger cooperation and we will see an increase in the export of Indonesian goods to Egypt,” the minister added.

Southeast Asia’s biggest economy has been increasing its trade engagement with Egypt, which it sees as a gateway for exports to other African countries. Sambuaga’s trip to Cairo followed Trade Minister Zulkifli Hasan’s visit just last year, during which he signed a memorandum of understanding with Egyptian Minister of Trade and Industry Ahmed Samir to form a joint trade committee aimed at boosting commercial relations.

Earlier in March, Indonesia and Malaysia collaborated to explore the possibilities of a free trade pact between the Association of Southeast Asian Nations and Egypt. Egypt ranks third among Indonesia’s top export destinations in the Middle East and North Africa, just after the UAE and Saudi Arabia.

With a bilateral trade volume worth around $1.58 billion in 2023, Egypt stands as Indonesia’s top trade partner in North Africa alone. Indonesia primarily exports palm oil, coffee beans, and coconut oil to Egypt.

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