March 12, 2021
Foreign Trade

Foreign Ministry officials meet with Indonesian Minister of Trade to discuss bilateral trade and cooperation

Foreign Ministry officials meet with Indonesian Minister of Trade to discuss bilateral trade and cooperation
During the meeting, Minister Lutfi offered his country´s support for Chile to join the Free Trade Agreement between the 10 countries that make up the ASEAN (Association of Southeast Asian Nations) bloc with Australia and New Zealand (AANZFTA).

Foreign Affairs Minister Andrés Allamand and International Economic Relations Undersecretary (SUBREI) Rodrigo Yáñez met with the Trade Minister of Indonesia, Muhammad Lutfi, to discuss bilateral economic matters and cooperation between the two countries.

Minister Lutfi offered his country´s support for Chile to join the Free Trade Agreement between the 10 countries that make up the ASEAN bloc with Australia and New Zealand (AANZFTA).

Undersecretary Rodrigo Yáñez said that in line with its strategy to diversify both the range of products and services it exports and the markets it exports to, Chile believes that joining AANZFTA will be mutually beneficial as Chile can serve as a platform for ASEAN to diversify and expand its trade in Latin America.

“This Agreement covers a market of approximately 679 million people, with GDP of more than US$4.6 billion, commercial transactions of US$75 billion and direct foreign investment flows of US$25 billion,” Undersecretary Yáñez explained.

On another note, the officials also discussed the ways in which the two countries could share their experience with regarding to the acquisition of vaccines, considering Chile´s success in this area.

They also spoke about the start of negotiations regarding services between their countries. The opening up of Indonesia to Chilean services will deepen our bilateral economic ties and increase the flow of trade in services.

Additionally, the officials pledged to promote bilateral trade, giving priority to the authorization of exports of new products in both markets, which in the case of Chile would benefit the walnut, meat and dairy export industries.

Bilateral trade

Over the last 18 years, Chile’s trade with Indonesia has grown by an annual average of 2.6%, reaching U$237.4 million in 2020. In 2020, Chilean exports to Indonesia reached US$95 million and imports US$142 million. Mining shipments totaled US35.2 million, forestry products reached US$12.2 million and cellulose products amounted to US$14.4 million.