The contract was signed by exporter from Cirebon, CV Al Malaibari, and El Khalada Misr Industry Egypt Company.
Indonesian Trade Attache in Cairo M. Syahran Bhakti expressed confidence of ever improving performance of national exports to Egypt and request for spices to be issued more often.
"Inking of this trade contract is very crucial in improving the performance of Indonesia's export to Egypt," he noted in a written statement received here on Wednesday.
The exporter can hopefully pay attention to the available payment system, so the transaction would not be hindered by any issues. It must be ensured first, whether the payment is made with Letter of Credit or Cash Against Documents, he added.
Indonesian Ambassador to Egypt Lutfi Rauf lauded the initiative. He expected that the trade contract would be mutually beneficial to both Egypt and Indonesia.
"Trade contract is expected to be done with (the full intention) of establishing commitment and mutual benefit. In other words, the exporter is responsible in providing goods and importer in securing payment, so the sustainability of products' order from Indonesia can be created," he elaborated.
Vast potential exists for trade between Indonesia and Egypt, he stated. Egypt, with its population of 110 million, and Indonesia, with 270 million people, are huge markets. Hence, it becomes increasingly important to tap into the potential of business and investment opportunities.
Other Indonesian products are expected to be added to the list as a means to improve trade relations among the two countries, he noted.
Representative from the Cirebon company, Muhammad Rifki, stated that they were ready to meet the demand for elephant ginger.
"Egypt has requested 120 tons of elephant ginger for 10 20-feet containers for the coming three months. They are valued at US$156 thousand, or Rp2.28 billion. Previously, Al Mailabari had exported nutmeg for Egyptian markets," he explained.
As the buyer, El Sayed Fahem stated that they were ready to enter business cooperation with Indonesia. Apart from elephant ginger, they plan to import other tropical fruits, such as pineapple, from Indonesia, he said.
According to the Trade Ministry's records, the total value of trade between Indonesia and Egypt in 2022 was valued at US$354.2 million.
Data from the Central Agency for Public Mobilization and Statistics (CAPMAS) recorded that the total value of Egyptian ginger imports in 2022 was US$45 million. Countries that supply ginger for Egypt are India, Indonesia, China, Nigeria, Singapore, and Saudi Arabia.
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Translator: Maria Cicilia G P, Mecca Yumna
Editor: Rahmad Nasution
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