Thailand, Indonesia set US$23bn trade target, expand ties across sectors
Thailand and Indonesia have set a target of increasing bilateral trade to US$23 billion by 2030 from about US$19.5 billion, while expanding cooperation in investment, halal industries, regional supply chains and transnational crime prevention
- Thailand and Indonesia have set a bilateral trade target of US$23 billion, which leaders from both nations are confident can be achieved before 2030.
- To reach this goal, the countries will increase cooperation in key sectors such as agricultural trade, two-way investment, strengthening supply chains, and jointly developing the halal industry.
- The partnership also involves enhancing connectivity to stimulate tourism and business, including new direct flight routes between Bangkok-Jakarta and Phuket-Bali.
- A formal action plan for the strategic partnership was established to create a framework for long-term cooperation, which also includes joint action against transnational crime and coordinating efforts to join the OECD.
Prime Minister and Interior Minister Anutin Charnvirakul held full delegation talks with Indonesian President Prabowo Subianto at the Istana Merdeka presidential palace in Jakarta at 5.30pm on August 3.
The visit was the first official trip to Indonesia by a Thai prime minister in 15 years.
Government Spokesperson Rachada Dhanadirek described the meeting as an important step in shaping cooperation between two of Southeast Asia’s largest economies at a time of global economic uncertainty.
Both leaders agreed to turn the Thailand–Indonesia strategic partnership into practical cooperation that would create economic opportunities, improve competitiveness, strengthen public security and reinforce ASEAN’s role at the centre of the region.
They expressed confidence that the US$23 billion trade target could be achieved before 2030, given the economic potential of both countries.
Trade, investment and halal industries
Anutin affirmed that Thailand was ready to serve as a reliable economic partner for Indonesia by increasing agricultural trade to support food security, promoting two-way investment and strengthening regional supply chains.
He invited Indonesian businesses to invest in Thailand, presenting the country as a hub for mainland Southeast Asia with links to major regional markets.
The two sides also agreed to develop the halal industry by combining Indonesia’s large Muslim consumer market with Thailand’s production capacity, product quality and halal standards.
They said the cooperation could generate greater value for businesses in both countries.
Joint action against transnational crime
Thailand and Indonesia agreed to strengthen cooperation against transnational crime, particularly online fraud, human trafficking and drug smuggling.
The measures will include intelligence sharing and closer coordination between law-enforcement agencies.
Anutin described online crime as a borderless threat requiring serious international cooperation.
Thailand assisted more than 1,000 Indonesians who had fallen victim to online scam networks in neighbouring countries to return home safely over the past year.
Prabowo thanked Thailand for the assistance, describing it as meaningful support that reflected the close friendship between the two countries.
He confirmed that Indonesia and Thailand would strengthen joint action against human trafficking, online scams and emerging security threats to provide concrete protection for their citizens.
The two countries also maintain close military relations across all branches of their armed forces and regularly conduct joint exercises. Prabowo previously trained with Thai special forces.
New routes and people-to-people links
The leaders welcomed continued growth in travel between their countries and the signing of a memorandum of understanding between the Tourism Authority of Thailand and TransNusa.
The agreement covers direct Bangkok–Jakarta and Phuket–Bali services, which are intended to make travel easier, stimulate tourism and strengthen links between the Thai and Indonesian people.
The two sides also agreed to deepen ASEAN economic integration to improve the region’s ability to withstand global economic volatility.
They reaffirmed support for ASEAN’s role in maintaining regional peace, stability and cooperation.
Anutin proposed that Thailand and Indonesia coordinate their efforts as both countries pursue membership of the Organisation for Economic Co-operation and Development.
He suggested that they exchange experience and act as a bridge between ASEAN and the OECD, helping regional economic, investment and governance standards move closer to international benchmarks.
Myanmar and regional stability
Prabowo praised Thailand’s role in gradually creating space for Myanmar to engage with ASEAN, particularly through informal talks among ASEAN foreign ministers.
He confirmed that Indonesia was prepared to work with Thailand and other ASEAN members under the Five-Point Consensus to support a peaceful resolution to the situation in Myanmar.
The Indonesian president also expressed hope that tensions between Thailand and Cambodia would be resolved peacefully through dialogue and constructive mechanisms, preserving regional peace and stability.
He said closer cooperation between Thailand and Indonesia would contribute to ASEAN’s long-term strength, security and prosperity.
Following the talks, the leaders witnessed the exchange of two documents.
- The first was an action plan on the Thailand–Indonesia strategic partnership, establishing a framework for long-term bilateral cooperation.
- The second was an education memorandum of understanding covering exchanges involving school pupils, university students, personnel and knowledge.
At a joint press conference, Prabowo described the meeting as the beginning of sustained cooperation between the two countries.
He said Thailand and Indonesia, as founding members of ASEAN, shared responsibility for promoting regional prosperity, stability and security, while helping the grouping respond to global challenges and maintain its central role.
