Workers unload sacks of rice at a warehouse. Rice is a potentially massive export commodity when it comes to the Kingdom’s trade balance with Indonesia. Post Staff
Senior diplomats from Cambodia and Indonesia have expressed optimism about the bilateral trade cooperation between the two countries, which has surpassed 1 billion dollars, as well as Cambodia's efforts to boost rice exports to Indonesia.
Minister of Foreign Affairs and International Cooperation Prak Sokhonn met with Indonesian ambassador to Cambodia Santo Darmosumarto at the foreign ministry headquarters on January 6.
Sokhonn recalled Indonesia's support for Cambodia's peace process and praised the strong bilateral relations between the two countries in the fields of politics, economics and national defence. He noted that this cooperation has helped increase the bilateral trade volume, which now exceeds one billion dollars.
“The two countries have many opportunities to expand bilateral trade, which first exceeded one billion dollars in 2023,” he said.
According to a statement from the foreign ministry, both sides are committed to enhancing the rice trade and promoting cooperation in the halal food industry. Additionally, they emphasised the importance of strengthening people-to-people relations through education, tourism and direct flights.
The General Department of Customs and Excise (GDCE) reported that from January to November 2024, trade between Cambodia and Indonesia amounted to $1.002.16 billion, marking a 3.8% increase compared to the same period in 2023. Cambodia exported $86.86 million worth of goods to Indonesia (up 23.1%) while importing $915.3 million worth (up 2.3%).
Indonesia is the Kingdom’s seventh-largest trading partner, following China, the US, Vietnam, Thailand, Japan and Canada.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on January 8 that the bilateral trade is the result of strong cooperation between both governments as ASEAN members and signatories to the Regional Comprehensive Economic Partnership (RCEP).
He added that while Cambodia’s exports to Indonesia are relatively small compared to its imports, this is because Indonesia is a large country with a significant population and a long-established industrial base. Indonesia is currently a hub for the production of vehicles, machinery and heavy equipment, which are exported to other ASEAN countries.
“Although Cambodia’s exports are improving, it still needs to make greater efforts to increase exports in response to growing demand,” he pointed out.
He noted that that since Cambodia’s agricultural production grows annually, this sector remains a priority for both the government and the private sector, especially in terms of processing and packaging for export.
In September 2023, Indonesia announced that it would purchase 250,000 tonnes of rice from Cambodia per annum as a measure to ensure food security in the country. Indonesia also pledged to support Cambodia’s food security infrastructure by providing fertilisers and training to the Kingdom’s farmers.
