Jakarta Globe is reporting that during an official state visit to Egypt on Wednesday (18/12/24,) Indonesia’s President Prabowo Subianto told his Egyptian counterpart Abdel Fattah el-Sisi that he would likely send several Indonesian businessmen to invest in the Suez Canal Economic Zone.
As expected, the bilateral talks touched on bolstering existing economic ties, as Indonesia continues to attract foreign direct investment (FDI) inflows in such meetings. But this time, Prabowo also spoke of having Indonesia invest in Egypt, particularly the Suez Canal Economic Zone, which can bring Jakarta’s businesses closer to major international shipping routes.
The 461-square kilometer area boasts six ports and four development areas that target various sectors, including textile, agribusiness, and pharmaceuticals.
“We already have a joint trade council, and we want to further strengthen [the economic ties]. Indonesia will send a high-level delegation to communicate with their Egyptian government counterparts and local businessmen,” Prabowo said in the joint press statement following the meeting, says Jakarta Globe.
“This high-level delegation will soon fly [to Egypt] to follow up on what we have agreed on, particularly on the possibility for us to take part in Egypt’s special economic zones [SEZs], particularly the Suez Canal Economic Zone.”
Indonesia, the world’s largest palm oil producer, is looking to develop the downstream industry of its top commodity. Palm oil is Indonesia’s leading export to Egypt. Prabowo added: “We are thinking of establishing the processing industry of several commodities such as palm oil. We are also thinking of taking part in establishing a logistics hub.”
Prabowo also wants both countries to strike a preferential trade agreement that is set to expand the market access for Indonesian products in the Middle East.
Jakarta Globe is reporting that in a press statement by the Egyptian presidential office, Sisi had told Prabowo of his government’s readiness to “provide all conditions to ensure the success of the operation” of Indonesian investors in Egypt. China is a top foreign investor in the Suez Canal Economic Zone. The SEZ also offers its investors a suite of financial incentives, including a 0-percent value-added tax for imports of raw materials and components.
Indonesia has also established 24 SEZs that promise its investors ease of doing business. The government is in the process of adding 8 more SEZs. Official government figures show that Indonesia has attracted USD 5 million worth of FDI from Egyptian investors so far in 2024 as of September. Indonesia-Egypt bilateral trade hit USD 1.4 billion from January to October 2024.
This marks the first time for an Indonesian president to make an official visit to Egypt in over a decade, the last time was when former President Susilo Bambang Yudhoyono (SBY) headed to Cairo for the Organization of Islamic Cooperation (OIC) summit back in 2013, according to Jakarta Globe.
Source: Jakarta Globe
Stock photo by Aliaksei Smalenski on Pexels
