World Economy

Malaysia Confident of Positive Trade With Indonesia

Malaysia Confident of Positive Trade With Indonesia Malaysia Confident of Positive Trade With Indonesia

Malaysia is confident that bilateral trade with Indonesia remains positive despite the volatile economic landscape, Prime Minister Datuk Seri Najib Tun Razak said.

He said although the trade target of $30 billion between Malaysia and Indonesia set earlier might not be achieved, the country’s second priority is certain, that is to continue to promote trade and investment growth, Bernama reported.

“At present, our statistics show Malaysia’s investments in Indonesia stood at $3.97 billion between 2008 and September 2014 while that of Indonesia’s in Malaysia were $1.89 billion,” he told a press conference after meeting Indonesian President Joko Widodo at the Perdana Putra Complex here, Friday.

Najib said he told Widodo Malaysia welcomes investors from Indonesia and likewise Widodo said Malaysian companies are also welcomed to invest in Indonesia and they would be given priority.

“He (Widodo) also explained the opportunities available and Indonesia’s priorities,” Najib said.

The prime minister said Proton would sign a memorandum of understanding with an Indonesian business partner on the Asean car project today (Friday) afternoon.

“President Widodo shared his views on this and showed keen interest to make this project a success,” Najib said.

Meanwhile, Widodo, who also fondly known as Jokowi, said Indonesia is inviting Malaysian companies to invest in the development of infrastructure such as ports, railways, airports and energy plants.

“We are providing the widest opportunity to investors from Malaysia,” he said.

Widodo said he discussed with Najib on the lifting of fuel subsidies by Indonesia and and the setting up of a national office to provide better services to foreign investors in Indonesia.

Widodo, who was sworn in as president in October 2014, picked as for his first state visit.

Malaysia is one of the biggest trading partners of Indonesia with bilateral trade of between RM24 billion to RM25 billion and also one of the biggest investor in the republic.

Up to November 2014, bilateral trade reached US$19 billion, and Malaysia’s investments in Indonesia touched close to US$1 billion currently.

Malaysians mostly invest in oil palm, banking, mining, telecommunications and health sectors in Indonesia.