Indonesia, which is set to become seventh largest economy in the world by 2050, has taken part in a second annual Joint Economic and Trade Committee (JETCO) with the UK where the two sides agreed to develop digital trade and to continue to focus on renewable energy.
With a population of 275 million, Indonesia is the largest South East Asian nation and economy and, the Department for Business and Trade (DBT) said, presents huge opportunities for UK businesses. Trade between the two countries is already worth £3.5 billion a year.
Launched in 2022 to help promote and develop trade, the first UK-Indonesia JETCO established working groups on renewable energy and clean growth, and on agriculture, food and drink.
International Trade Minister, Nigel Huddleston, said: “We’re ready to deepen our trade ties with this growing economic powerhouse by opening exciting new opportunities for UK businesses selling to Indonesia. We are playing to our strengths, focusing our attention on areas of mutual benefit like digital trade. Making trade easier in these areas will provide a boon to our world-leading services industries.”
Easing digital trade could unleash growth in UK services exports, already worth £658 million to Indonesia last year, he suggested.
The Minister also highlighted opportunities for increased collaboration in areas such as food and drink, agriculture, education services, Indonesia’s energy transition, legal services and fintech.
Lord Vaizey of Didcot, Chaiman of the UK-ASEAN Business Council, said that it was committed to supporting the growth of the UK–Indonesia trading relationship, by working with both governments to promote the tremendous number of trade and investment opportunities it has to offer.
