Dar es Salaam. The value of goods and services exported from Tanzania to Indonesia increased by nearly ten percent, rising to $13.9 million in 2020 from the $12.6 million recorded in the previous year.
This was said by the Indonesian ambassador in Tanzania, Mr Ratlan Pardede, during the 4th Appreciation Night for Indonesia’s Business Partners conducted last Friday.
However, according to the Indonesian envoy, data from the Indonesian Statistics body have shown a 15 percent decrease in the value of exports from Indonesia to Tanzania, dropping from $194.3 million in 2019 to $164.3 million in 2020.
“The numbers do not represent the real potential of trade between Indonesia and Tanzania as the two countries can create more possible economic cooperation,” said the ambassador.
The ambassador added that, “For this reason, Indonesia stands ready to do more trade with Tanzania. As such, the embassy encourages Indonesia and Tanzania to open a new chapter in trade cooperation through the establishment of a preferential trade agreement.”
He said a preferential trade agreement between Indonesia and Tanzania would open up more opportunities for both nations and reduce trade barriers.
Tanzania’s exports to Indonesia include cloves, cotton, tobacco, cocoa, copper and ground nuts while Indonesia’s main exports to Tanzania are edible crude palm oil, machinery parts, chemical products, paper and garments.
The Appreciation Night’s event was graced by the Zanzibar minister of state for Economy and Investment, Mr Mudrick Soraga, and business representatives from Tanzania and Indonesia.
In his remarks, Mr Soraga invited more investors to the semi-autonomous Spice Islands, saying there are many investment opportunities as the new government is keen to develop its potential for a blue economy.
“I was pleased to know that Indonesian investors plan to build processing industries for seaweed and cloves in Zanzibar. We invite potential investors because there are many opportunities for that,” he said.
“To bolster closer cooperation between our two countries, the ministries of Investment and of Foreign Affairs had arranged a trip for around 200 Tanzanian businesspersons to visit Indonesia. However, because of the Covid-19 pandemic, the initiative was postponed until next year,” Mr Soraga said.