Malaysia and Indonesia are stepping up economic cooperation, targeting an increase in bilateral trade beyond RM114 billion by improving trade facilitation, reopening border trade routes, and promoting greater investment between the two countries.
KUALA LUMPUR/JAKARTA – Malaysia and Indonesia have significant potential to expand bilateral trade beyond RM114 billion, or approximately US$28 billion, recorded last year. Both countries are focusing on improving trade facilitation and the movement of goods across their shared borders to stimulate economic activity.
Malaysia’s Investment, Trade and Industry Minister, Datuk Seri Johari Abdul Ghani, said reducing trade barriers and improving the efficiency of cross-border procedures could significantly increase transaction volumes between Malaysia and Indonesia.
“What is important is that we can double, triple or quadruple the volume of transactions if both countries can strengthen trade facilitation,” Johari told Bernama after meeting Indonesian Foreign Minister Budi Santoso at the fourth Malaysia-Indonesia Joint Trade and Investment Committee (JTIC) meeting on September 3.
Malaysia-Indonesia Bilateral Trade Continues to Grow
Johari said Malaysia exported approximately RM51 billion worth of goods to Indonesia last year, while imports from Indonesia amounted to around RM62.6 billion. Malaysia is also seeking further opportunities to increase its exports to the Indonesian market.
During the first seven months of 2026, bilateral trade between the two countries reached RM71.1 billion, an increase of 10% compared with the same period a year earlier, highlighting the continued expansion of economic ties between the two neighbouring countries.
Johari said a key priority for both countries is to further increase bilateral trade by reducing trade barriers and making the movement of goods between Malaysia and Indonesia more efficient.
Border Trade to Support Economic Growth
One of the key issues discussed at the JTIC meeting was the border trade agreement, which Malaysia and Indonesia see as an important mechanism for promoting economic activity and trade among communities along their shared border.
The two countries signed the border trade agreement in 2023, and technical teams from both sides are currently working on the relevant issues to ensure that the agreement can further facilitate border trade.
In addition, Malaysia and Indonesia are preparing to reopen trade through the Tebedu-Entikong border route, with the remaining administrative matters expected to be resolved soon.
Johari said reopening the route would provide an additional channel for the movement of goods and support economic activity in border areas on both sides.
Export Policies, Investment and Halal Cooperation on the Agenda
Beyond border trade, the meeting also covered several key areas, including Indonesia’s export policies, investment cooperation, standards and requirements, as well as halal cooperation.
Johari said Malaysia understood the rationale behind Indonesia’s new policy on the export of strategic commodities and natural resources, which requires certain exports to be channelled through designated state-owned entities.
At the same time, both countries highlighted the importance of strengthening investment cooperation. Johari said Malaysia’s cumulative investment in Indonesia between 2023 and 2025 amounted to approximately RM70 billion, equivalent to around US$17 billion.
He said Malaysia and Indonesia could gain greater mutual benefits by deepening cooperation in trade and investment, supported by continued collaboration between the leaders of both countries.
Indonesia Expects Trade and Investment to Increase
Meanwhile, Indonesian Foreign Minister Budi Santoso said Indonesia expects bilateral trade with Malaysia to continue growing alongside stronger investment flows.
“We expect trade between the two countries to continue increasing, with Malaysia’s exports to Indonesia rising and Indonesia’s exports to Malaysia also expanding,” Budi said.
He said the close relationship between Malaysia and Indonesia as fellow ASEAN members, together with their strong cultural ties, would help strengthen mutual trust and support the growth of Malaysia-Indonesia trade and investment.
Continued cooperation is therefore expected to enable Malaysia and Indonesia to increase bilateral trade beyond RM114 billion in the coming years, particularly if trade facilitation, border trade and investment initiatives progress as planned.
Source :
www. vietnamnews.vn
www. theedgemalaysia.com
www. themalaysianreserve.com
Amasis Shipping Co., Ltd.
📞 +84 906 660 888
📩 info@amss.com.vn
🏘️27-29 Ngo Thi Bi Street, Tan Hung Ward, Hochiminh City
