Agro-commodity exports from Indonesia to Vietnam are expected to run smoothly as there are still obstacles for Indonesian agricultural products and fruits to enter the Vietnamese market.

Jakarta (Indonesia Window) – Indonesian President Joko Widodo has asked his Vietnamese counterpart Nguyễn Xuân Phúc to make the exports of agricultural commodities from Indonesia to Vietnam run smoothly.

Exports of Indonesian agricultural commodities to Vietnam are expected to run smoothly because there are still obstacles for the commodities including fruits to enter the Vietnamese market, Widodo said in a joint press statement with Nguyễn Xuân Phúc after a bilateral meeting at the Bogor Presidential Palace in West Java, Thursday.

On the occasion, the Indonesian head of state also encouraged an increase in the strategic partnership both bilaterally and regionally.

"Vietnam has been Indonesia's strategic partner since 2013. At the meeting we discussed various efforts to enhance strategic partnership both bilaterally and regionally," President Widodo said.

In the context of bilateral cooperation, the two heads of state agreed to strengthen cooperation in the trade sector.

The Indonesian president pointed out that the trade value between the two countries, which was targeted to reach 10 billion U.S. dollars in 2023, has been achieved in 2021 when the figure totaled 11.06 billion dollars.

"In the last five years there has been an increase in trade of 9.77 percent. For this reason, we agreed to set a new bilateral trade target of 15 billion dollars by 2028," he said.

Discussing cooperation in the investment sector, Widodo appreciated the Vietnamese government's trust in Indonesian companies investing in that country.

Telling about the accumulation of Indonesia's investment value in Vietnam, which was recorded at more than 600 million dollars covering 101 projects, the president emphasized the need to protect Indonesia's investment in Vietnam.

“I hope the solution of several issues experienced by Indonesian investors would encourage new investments in the future," he said.

In addition, the two leaders likewise discussed efforts to strengthen cooperation in the fields of clean energy as well as new and renewable energy.

The Indonesian president welcomed the signing of a memorandum of understanding on cooperation in the field of energy and mineral resources between the two countries which he considered could encourage the development of solar, hydrogen and smart grid power plants.

"I also welcome Vietnam's planned collaboration with state-owned enterprises and companies in Indonesia, such as PT BTM and PT Wima for marketing Gesit electric motorbikes in Vietnam, Indonesia Battery Corporation (IBC) for investing in the manufacture of EV (electric vehicle) batteries, and PT INKA for the purchase of electric bus components," he said.

Discussing an increasing in connectivity between the two countries, President Widodo emphasized that the two countries should immediately restore the traffic flows of goods and tourists like those in a condition before the pandemic period.

“Direct flight routes to the business and tourism centers of the two countries have to be revitalized. Airlines from and to the two countries are expected to be able to finalize plans for new flight routes from Da Nang to Denpasar and Hồ Chí Minh to Jakarta, as well as additional flights for the Jakarta-Hồ Chí Minh City route," the president added.

The two leaders also discussed the Exclusive Economic Zone (EEZ) negotiations between Indonesia and Vietnam.

The Indonesian head of state said that after 12 years of intensive negotiations, Indonesia and Vietnam were finally able to complete negotiations on the EEZ boundary lines of the two countries based on the 1982 UNCLOS (United Nations Convention on the Law of the Sea).

In the series of meetings between the two leaders, three memoranda of understanding (MoU) were also agreed between the Government of Indonesia and the Government of the Socialist Republic of Vietnam.

The three memorandums are that between the Republic of Indonesia's National Counterterrorism Agency (BNPT) and the Ministry of Public Security of the Socialist Republic of Vietnam on Counter-Terrorism Cooperation; that between the Republic of Indonesia's National Narcotics Agency (BNN) and the Ministry of Public Security of the Socialist Republic of Vietnam on Cooperation in Eradicating Illicit Trade in Narcotics, Psychotropic Substances, and Their Precursors; and that between the Indonesian Ministry of Energy and Mineral Resources and the Ministry of Industry and Trade of the Socialist Republic of Vietnam on Cooperation in the Energy and Mineral Resources Sector.

“I hope that cooperation in fisheries and the eradication of IUU (illegal, unreported, and unregulated) fishing can be strengthened through accelerating the finalization of the MoU on maritime and fisheries cooperation," Widodo said.

Regarding regional issues, the Indonesian president and his Vietnamese counterpart discussed the increase in the ASEAN cooperation. President Widodo expressed his appreciation for Vietnam's support for Indonesia's chairmanship in ASEAN.

"The priority for Indonesia's leadership in ASEAN in 2023 will emphasize ASEAN's central role in maintaining regional stability and peace and ASEAN's central role in making Southeast Asia a center of economic growth," President Widodo said.

Reporting by Indonesia Window