Cambodia-Indonesia goods trade balloons by 48% in 2022

The merchandise trade volume between Cambodia and Indonesia totaled $948,533 million in 2022, an increase of 48.27 percent over a year earlier, with Cambodian imports accounting for a 96.12 percent share, increasing by 1.08 percentage points per year, according to the General Department. of Customs and Excise (GDCE).

In 2022, Cambodian merchandise exports and imports from Indonesia increased to $36,839 million and $911,694 million, respectively, up 15.9 percent and 49.96 percent year-on-year, reducing the Kingdom’s trade deficit with the archipelago nation by 51,544 percent to 81,5447 dollar expands. million, from $576.167 million in 2021.

Last month alone, the Cambodian-Indonesian goods trade volume was $118.29 million, up 63.8 percent from $72.20 million in December 2021 and up 102.9 percent from $58.30 million in November 2022.

The Kingdom’s exports totaled just over $3.5 million, up 33 percent year-on-year but down 12 percent month-on-month, while imports came in at nearly $114.8 million, up 65.0 percent year-on-year and up 111.3 percent month-on-month.

December was the best month for both two-way trade and Cambodian exports to Indonesia last year, with May in second place at $96.20 million and $94.60 million, while the top two for imports were September and July at $ 5.19 million and $4.16 million, GDCE were. Show statistics.

The Kingdom’s free trade agreements (FTA) have become a big draw for Indonesian and other foreign investors, especially the bilateral deals with China and South Korea, as well as the Regional Comprehensive Economic Partnership (RCEP), Cambodia Chamber of Commerce Vice President Lim Den Heng told the Posted on January 19th.

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He assured that trade deficits are not necessarily bad news, reasoning in the case of Cambodia that, as a developing country with limited resources, the Kingdom requires raw materials and equipment to be brought in from abroad to meet local demand, including for production and ‘Processing of export goods.

“It is important to look at export markets because the prospects for Cambodia’s overseas sales are brighter than ever,” Heng said.

Hong Vanak, Director of International Economics at the Royal Academy of Cambodia (RAC), was not so quick to dismiss the Kingdom’s trade deficit with Indonesia as of little consequence.

The local export community must look hard and identify the most valuable goods of the Kingdom, should it try to increase exports in particular, he suggested, arguing for the merit of penetrating the Indonesian market with as many Cambodian goods as possible.

According to Trading Economics, out of Cambodia’s $31.78 million worth of merchandise exports to Indonesia in 2021, “knitted or crocheted fabrics” accounted for the most with $6.40 million, followed by “glass and glassware” ($5.97 million), “Articles of clothing and clothing accessories, knitted or crocheted” ($5.13 million), and “Shoes, gaiters and the like” ($3.58 million).

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The next four items were: “Articles of clothing and clothing accessories, not knitted or crocheted” ($3.22 million), “Printed books, newspapers, pictures” ($1.29 million), “Miscellaneous articles of base metal” ( $1.23 million) and “electrical, electronic equipment” ($1.13 million).

For reference, the eight categories respectively correspond to chapters 60, 70, 61, 64, 62, 49, 83 and 85 of the harmonized tariff plan.

RAC’s Vanak pointed out that Indonesia is ASEAN’s most populous nation and largest economy as well as a member of the Group of 20 (G20) – an intergovernmental forum made up of 19 countries and the EU, most of the world’s largest economies represented.

“Dealing in the demand as well as the production of goods that suit the Indonesian market is an opportunity to bridge the bilateral trade gap,” he said, stressing that a decisive uptick of Indonesian investors in the local ecosystem can significantly improve exports safe.

Interestingly, the Ministry of Tourism recorded an all-time record of 75,653 Indonesian visitors to Cambodia last year, the majority of whom marked their purpose of visit as “business”, at 55,107, followed by “holiday” (20,328) and “other” (218 ) – compared to second place 2019 66,804 (26,410 shops; 38,530 vacations; 1,864 others).

The increase in Indonesian business travel could be attributed to the establishment of the Indonesian Chamber of Commerce in Cambodia (IndoCham) on September 23, 2021, as well as a number of key business-related events that paved the way for partnerships between public and private organizations from both countries .

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Sok Chenda Sophea, Secretary General of the Council for the Development of Cambodia (CDC), the highest decision-making body of the government for major investments, was particularly confident in the fruits that the 22 February 2022 Indonesia-Cambodia investment dialogue would yield.

Chenda Sophea said he expected that, as a result of the dialogue, the Indonesian business community could get a clearer and deeper understanding of the new law on investment, and thus help convince more investors from the archipelago nation to bet on the kingdom.

At the event, Indonesian Ambassador Sudirman Haseng promised that his embassy would work with IndoCham to promote trade between the two Southeast Asian countries and attract investment to the Kingdom.

The embassy and IndoCham “will work with relevant Cambodian ministries and institutions to further strengthen Indonesian investment in Cambodia,” he confirmed.

The dialogue was held at the CDC, and organized in collaboration with the Embassy and IndoCham.

On the occasion, CDC Chenda Sophea commented that historically Indonesian investors who were active in Cambodia were significant contributors to the Kingdom’s economic growth.

He also shared an optimistic outlook on prospects for investment from Indonesia, and expressed hope that more Indonesian investors would enter the Cambodian market, drawn by the great benefits of the Kingdom’s FTAs.



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