Cambodia Investment Review
In anticipation of the upcoming “Sousdey Indonesia” Expo, the Indonesia Chamber of Commerce in Cambodia (IndoCham) hosted a business networking reception at Morgan Tower, Koh Pich, Phnom Penh, on September 12, 2024. The event aimed to strengthen business ties and promote bilateral trade between Cambodia and Indonesia, attracting over 100 participants, including prominent business leaders from both countries.
Strengthening Bilateral Ties
The cocktail reception presided over by the Indonesian Ambassador to Cambodia, H.E. Santo Darmosumarto, provided a platform for business representatives from various sectors to explore opportunities for collaboration. Also in attendance was Mirza Nurhidayat, Director of Southeast Asia at Indonesia’s Ministry of Foreign Affairs. The event served as a prelude to the Sousdey Indonesia Expo, which will be held at the Diamond Island Exhibition and Convention Center on September 13-14, 2024.
The Expo, organized by the Indonesian Embassy, will focus on promoting bilateral trade, cultural exchange, and educational opportunities for Cambodian students. It is expected to draw significant interest from both Cambodian and Indonesian business communities.
IndoCham’s Commitment to Collaboration
Speaking at the networking event, IndoCham President Dalton Wong emphasized the importance of fostering relationships between businesses from both countries. “This is a fantastic opportunity for businesses from Cambodia and Indonesia to connect, exchange ideas, and explore collaborations. Events like this help us unlock more avenues for trade and investment that will benefit both nations,” Wong said.
The event saw participation from over 70 Indonesian business representatives, along with local Cambodian industry leaders and representatives from various business chambers in Cambodia. Attendees had the opportunity to network and discuss potential business ventures aimed at enhancing trade relations between the two nations.
Growing Trade and Future Opportunities
The trade relationship between Cambodia and Indonesia has seen significant development in recent years. In 2023, Indonesia became Cambodia’s sixth-largest trading partner, rising from the 12th position in 2022. Bilateral trade between the two countries reached $1.09 billion, marking a 14.6% increase from $948.53 million in 2022. Cambodian exports to Indonesia surged by 151.7%, amounting to $92.74 million, while imports from Indonesia grew by 9.1%, totaling $994.6 million.
Notably, Indonesia announced an annual commitment to purchase 250,000 tonnes of Cambodian milled rice to support food security initiatives. This agreement also includes support for enhancing Cambodia’s food security infrastructure, further solidifying trade ties between the two nations.
The growth in trade has been facilitated by both countries’ memberships in ASEAN and the Regional Comprehensive Economic Partnership (RCEP). However, Cambodia continues to face a trade deficit with Indonesia, a concern that Cambodian officials are addressing by promoting export growth in key sectors, particularly agriculture.
Efforts to boost exports to Indonesia are seen as crucial in balancing the trade relationship. Cambodian industry leaders are urging greater collaboration in areas such as agricultural production and manufacturing to enhance Cambodia’s export capabilities and reduce the trade deficit.
