The Embassy of Indonesia is pushing for a Preferential Trade Agreement with Kenya.
This emerged on Wednesday during a webinar dubbed “Kenya-Indonesia Business Forum” to promote trade balance between the two countries.
Indonesia Ambassador to Kenya Hery Saripudin said with the new Kenyan mission in Jakarta, more trade will emerge, strengthening the bilateral relations.
"I am pleased to inform you that Kenya and Indonesia's relations have seen a new milestone. That new milestone is the opening of the new Kenyan High Commission in Jakarta."
"We encourage Kenyan businesses to use the momentum of the official opening of the new embassy to come to Jakarta and seek opportunities with their Indonesian counterparts," Ambassador Saripudin said.
The envoy said they are confident that the new mission in Jakarta will be in a proper position to input on how crucial it is for Kenya and Indonesia to have a PTA to enable stronger economic ties.
The webinar was an initiative of the embassy and Bright Indonesia, an international market access development firm based in Indonesia to help interested Kenyan companies find business opportunities with their Indonesian counterparts.
It brought together Kenya Chamber of Commerce officials, Foreign Affairs and Sintesa Group of Indonesia, among other participants.
Ambassador Samuel Gitonga, Director at Secretary Foreign Service Administration, and first vice president of the Kenya National Chamber of Commerce and Industry Erick Rutto explained the various opportunities between the two countries.
Rutto said Indonesia is one of the emerging markets for Kenya for both trade and investment and welcomed the opportunities presented in the Indonesian market.
"KNCCI is committed to working with foreign missions and international partners to support local businesses. Kenya needs to look to the Indonesian market," Rutto said.
Sintesa Group Vice president Yono Reksoprodjo invited Kenyan investors to Indonesia, saying there are many opportunities, and that the Indonesian government is making the country attractive for international businesses.
"Many efforts are put in place to attract businesses to Indonesia. The stable political situation, aggressive infrastructure development, a huge market of 270 million people, strategic geographical position among ASEAN countries are the things to consider that Indonesia as a very potential partner," Reksoprodjo said.
The executive director of Specialty Coffee Association of Indonesia Andi Fachri said there are opportunities for interested Kenyan coffee producers to look into in the Asian country.
"Kenyan specialty coffee is renowned throughout the world. Although Indonesia is bigger in quantity, Kenya is doing great in producing better quality coffee. Therefore, I am positive that coffee is one of the low-hanging fruits, or a gateway, to more business activities between the two countries," he said.
He further highlighted that coffee shops and consumer demand are the driving force of innovation and that the demand for coffee in Indonesia is the highest in South East Asia.
Last year, the department of Trade said bilateral trade averaged $474 million every year.
In 2020, trade between Kenya and Indonesia stood at $596 million in which Kenya's exports were $8 million, while imports from Indonesia were $588 million.
The balance of trade, which is heavily in favor of Indonesia, was valued at $580 million.
Kenya's main exports to Indonesia are tea, leather, metallic salts and peroxy salts, tobacco, vegetable textile fibers, essential oils, jute and other textile fibers, vegetables (fresh, chilled, frozen), coffee, and coffee substitutes.
Kenya imports vegetable fats (palm oil), paper and paperboard, animal or vegetable fats and oils, margarine, natural rubber electrical machinery, electrical and non-electrical equipment, glass and apparel, and clothing accessories.