Indonesia-Sri Lanka Talk Wheat and Tea Trade

Indonesia and Sri Lanka held a bilateral meeting on the sidelines of the 9th World Trade Organization Ministerial Conference (MC9 WTO) in Nusa Dua, Bali, on 3 December. The Indonesian Vice Minister, Bayu Krisnamurthi, met the Sri Lankan Minister of Industry and Trade, Rishad Bathiudeen, to discuss efforts to enhance the trade relationship between Indonesia and Sri Lanka that can benefit both countries.

“Indonesia is currently exploring investments in hospitality and travel sectors in Sri Lanka,” stated the Vice Minister. Indonesian companies that have invested in Sri Lanka include PT. Kalbe Farma and PT. Dexa Medica (pharmaceutical products), PT Jembo Cable (electrical cables), Indorama Group (raw materials for textile), PT Agro Indomas (palm oil processing) and PT Usaha Tani Lestari (coconut products).

In the agricultural sector, Sri Lanka is also known as the world’s second largest exporter of tea. Apart from that, this country is also recognized as an exporter of wheat, rubber, coconut, and fiber. Its rubber production amounts to 36% of the world’s rubber production.

Sri Lanka specifically expressed its concern on its access to the wheat market in Indonesia. Indonesia is the target destination of around 80% of Sri Lanka’s wheat exports to the world. However, Sri Lanka’s current access to the wheat market in Indonesia is obstructed by Indonesia’s implementation of safeguards to Sri Lankan wheat.