Jakarta,     - Indonesia will increase its non-oil/non-gas exports to Egypt by 10 percent in 2010 following closer trade relationship between the two countries, Trade Minister Mari Pangestu said.

   "They must increase minimally by 10 percent but it will be good if it can be higher. Minimally it will be the same but through hard work we hope , they will go up," she said after meeting with Egyptian Trade and Industry Minister Rachid Mohamed Rachid here on Wednesday.

   According to the trade ministry's records, total trade between the two countries  rose  by 45.2 percent from 2004 to 2008.

   In 2008, total trade between the two countries reached UD$1 billion with Indonesia's exports valued at US$790.7 million and imports from Egypt at US$210.0 million.

    From January to October 2009 total trade between the two countries reached US$632.5 million with Indonesia's exports recorded at US$555.1 million and imports at US$77.4 million.

    The main products exported to Egypt are palm oil, fiber and yarn, paper products, plywood, coffee, soaps, glasswares, garments, furniture, chemical fertilizers, cotton, sugar cane molasses and rubber products like tires.

    Indonesia's main imports from Egypt meanwhile are phosphate, dates and fruits, carpets, textile products and cotton yarn.

    "Egypt is one of the entry points for Indonesian products to go North African markets and 20 member countries of the Common Market for East and South Africa. Egypt meanwhile sees Indonesia as the most important country in the Southeast Asian region and an entry point to Southeast countries," Mari said.

    She said investment cooperation between the two countries had also improved with some Indonesian companies already investing in textile, petrochemical and glassware manufacturing industries in Egypt.

    The Indonesian companies that have successfully expanded to Egypt are PT Indorama, PT Kedaung Group and PT Multistrada.

    In the meeting the two ministers discussed efforts to increase trade and economic cooperation between the two countries considered still below its potentials.

    Several sectors potential to be improved are palm oil, furniture, sugar and rice, fertilizer, pharmacy, tire, handicraft, textile and phosphate in addition to construction, IT and sea transportation service sectors.

    Rachid Mohamed Rachid meanwhile said he was optimistic the two countries would be able to increase their trade and investment cooperation.

    "We have agreed to jointly study the barriers hindering trade and investment so far with regard to overcoming them," he said.

-Antara, 14 January 2010-