The Indo-Chilean Chamber of Commerce and Culture has been closely monitoring the recent developments in the economic and trade relations between Indonesia and Chile. This week's news reflects the strengthening of ties and the potential for growth despite some challenges.

According to the Directorate of Studies of the Undersecretariat of International Economic Relations (Subrei), Chile's trade exchange experienced a contraction of 1.7% compared to the same period in 2023, totaling USD 60.220 billion. However, the country's exports, which amounted to USD 33.062 billion, saw a slight fall of 0.4%. This is largely due to a decrease in lithium, molybdenum oxide, and copper cathode exports. On the other hand, the growth in shipments of copper concentrates, fresh cherries, gold, iron, fresh grapes, bleached and semi-bleached eucalyptus cellulose, fresh blueberries, fresh plums, potassium nitrate, and fishmeal has largely offset these losses.

Indonesia has expressed interest in deepening trade with Chile, particularly in the lithium sector, which is vital for Jakarta's aspirations in electric vehicle production. The main exported items include vehicles, spare parts, footwear, and Indonesian fertilizers, Chilean copper, cellulose, and fishery articles. The Comprehensive Economic Partnership Agreement (CEPA), signed between the two nations in 2019, has led to a 23% increase in trade since its implementation.

The Indonesia-Chile Forum, held at the Intercontinental Hotel in Santiago, brought together government, business, and academic leaders to optimize trade, investment, and economic partnership between the two countries. The event underlined the importance of strengthening bilateral ties in a context of economic growth in Southeast Asia and the growing relevance of relations with the region.

Furthermore, the Senate Foreign Relations Committee unanimously approved projects to modernize economic-trade agreements with Indonesia in the field of services and with the Pacific Alliance, which seeks to expand the scope of origin accumulation to the Associated States of the regional bloc. These initiatives will now continue their process in the Senate Chamber.

On another note, Meratus Group announced the arrival and incorporation of the WM Meratus Cilacap, its new ship, into the company's fleet. With enhanced capacity and cutting-edge technology, the company is better equipped to serve its customers, particularly in remote ports located in the Indonesian archipelago.

In conclusion, the Indo-Chilean economic and trade relations are on a promising trajectory, marked by cooperation, strategic agreements, and mutual interests in key sectors. The Chamber remains committed to fostering these ties for the mutual benefit of both nations.

• Intercambio comercial de Chile cae -1,7% - PortalPortuario (Portalportuario.cl)
• Con la mirada en el litio, Indonesia quiere profundizar comercio con Chile | AméricaEconomía (Americaeconomia.com)
• “Avanza la alianza: Foro Indonesia-Chile impulsa la cooperación económica entre ambos países” | ADN Radio (Adnradio.cl)
• Avanzan en comisión del Senado acuerdos con Indonesia y Alianza del Pacífico | Diario Financiero (Df.cl)
• Meratus Cilacap se integra a operaciones en Indonesia - PortalPortuario (Portalportuario.cl)
• Subsecretaria Sanhueza destaca aprobación de proyectos que modernizan acuerdos con Indonesia y con la Alianza del Pacífico en Comisión de Relaciones Exteriores del Senado (Diarioestrategia.cl)

The Indonesian-Chilean Chamber of Commerce and Culture highlights a series of events that have marked the economic, cultural, and natural landscape of both countries in the past week.

Chile has been granted permission to export poultry meat and by-products to Paraguay, as reported by La Tribuna. This is a significant milestone for the Chilean poultry industry, opening a new market and fostering stronger economic ties between the two nations.

Simultaneously, the Organization for Economic Cooperation and Development (OECD) has raised its growth projection for the Chilean economy to 2.3% in 2024, a half percentage point increase from the 1.8% estimate in November last year. The Paris-based organization attributes this positive adjustment to a recovery of real wages, aided by falling inflation and more flexible financial conditions. The OECD also projects that inflation will continue to decrease and converge to a 3% target by mid-2025.

In the agricultural sector, exports of cherries to China increased by 16% in the 2023-2024 season, reaching a record US$ 2.260 billion, according to data from ProChile's Department of Market Intelligence. This notable increase demonstrates the robustness of Chile's agricultural sector and its ability to navigate the international market successfully.

Meanwhile, in Indonesia, the remote Mount Ruang volcano erupted multiple times, triggering the highest level of alert and the evacuation of thousands of people due to the threat of a tsunami from debris sliding into the sea. This natural event has drawn international attention to Indonesia and its volcanic activity.

The Indonesian-Chilean Chamber of Commerce and Culture continues to monitor these developments closely, recognizing their potential to shape the economic and cultural ties between the two nations.

• Chile obtuvo habilitación para exportar carne y subproductos de aves a Paraguay | La Tribuna (Latribuna.cl)
• OCDE eleva proyección de crecimiento de economía chilena al 2,3% en 2024 (Lanacion.cl)
• VIDEO: La espectacular imagen de rayos volcánicos en la erupción del Monte Ruang en Indonesia (Lanacion.cl)
• OCDE eleva la proyección de crecimiento para Chile al 2,3% en 2024 - Radio Santiago (Eldiariodesantiago.cl)
• Exportaciones de cerezas a China aumentaron 16% en temporada 2023-2024: Alcanzó US$ 2.260 millones - Radio Agricultura (Radioagricultura.cl)
• Exportaciones, cambio climático y alza en los costos. Por Camilo Cornejo Orellana, Ingeniero Agrónomo Académico Ingeniería Comercial Universidad Andrés Bello – G5noticias (G5noticias.cl)

The Chilean-Indonesian Chamber of Commerce and Culture highlights several key developments in bilateral trade, agriculture, and mining sectors between Chile and Indonesia this week.

The Chilean Blueberry Committee is set to organize a Technical Workshop titled "Efficiency in nutrition and irrigation during post-harvest" on March 27, 2024, at Agrícola Sauerburger. The workshop, which will feature a presentation by José Ignacio Covarrubias, aims to improve post-harvest practices in the blueberry industry.

On the mining front, Adani's copper foundry is set to require Chilean concentrates as part of its US$1.2 billion investment. This development is expected to boost Chile's copper exports and strengthen the bilateral trade relationship between Chile and Indonesia.

Furthermore, India's decision to reduce import duties on Chilean blueberries has been warmly welcomed by Chilean exporters. This move is anticipated to spur Chilean blueberry exports and contribute to the growth of the country's fruit industry.

Meanwhile, the total exports from Biobío have grown by 1.7% in 2023, despite a national decrease of 3.7%. This growth underscores the region's resilience and its significant contribution to Chile's economy.

Chile's fruit industry continues to thrive, with fruit-growing hectares reaching 375,600 hectares by the end of 2022. Over the last decade, the industry expanded by over 76,000 hectares, with cherry plantations leading the growth.

Lastly, Chile has made its presence felt at the world's largest mining fair in Canada, seeking investors and promoting its lithium and copper production. Chile's Minister of Mining, Aurora Williams, emphasized the country's position as a global leader in mineral reserves and its intent to advance in polymetallic mining through public-private partnerships.

• Comité de Arándanos de Frutas de Chile invita a Taller Técnico “Eficiencia en la nutrición y riego durante la postcosecha” – Simfruit (Simfruit.cl)
• Fundición de cobre de Adani de US$ 1.200 millones de inversión requerirá concentrados de Chile (Redimin.cl)
• India reduce aranceles a los arándanos chilenos | Artículo (Eldemocrata.cl)
• Exportaciones totales del Biobío crecen en 1,7% en 2023, mientras que a nivel nacional disminuyeron en 3,7% | La Tribuna (Latribuna.cl)
• Chile: Hectáreas frutícolas llegan a 375.600 hectáreas – Simfruit (Simfruit.cl)
• Chile llega a la mayor feria minera mundial en Canadá para buscar inversionistas y promover el litio y cobre (Reportediario.cl)

The Indo-Chilean Chamber of Commerce and Culture is pleased to report significant developments in the Chilean trade sector. The Chilean cherry, a symbol of prosperity and good fortune in Chinese culture, has become the favorite fruit among Chinese consumers, particularly during the Chinese New Year celebrations which this year falls on February 10th.

Claudia Soler, Executive Director of the Cherry Committee of Frutas de Chile, expressed optimism for the 2023-2024 season. "The condition and quality of our fruit have been good, as producers and exporters understand the importance of quality for the sustainable development of the industry in the future," Soler stated. Despite challenges posed by spring rains, early varieties of cherries were prioritized for air shipments to ensure the fruit's condition.

Furthermore, Chile's trade exchange has seen a resurgence, thanks to copper shipments. According to the first commercial report of the year from the Undersecretariat of International Economic Relations (Subrei), Chile's trade exchange climbed to US$16.144 billion, marking a 2.5% increase compared to January 2023 (+US$400 million). This positive variation is the first after 15 months since October 2022.

In addition, the Los Lagos Agricultural and Livestock Service has certified the shipment of red sarsaparilla to Europe, further diversifying Chile's export portfolio. January 2024 saw a slight improvement in Chilean exports, breaking a nine-month streak of declining foreign sales. According to data from the Central Bank, foreign shipments reached US$ 9.145 billion, a 2.7% increase compared to the same month the previous year.

The Indo-Chilean Chamber of Commerce and Culture continues to support these positive trends in trade exchange, strengthening the economic ties between Chile and its international partners.

• Cereza chilena se posiciona como la fruta favorita para celebrar el Año Nuevo Chino (Eltipografo.cl)
• Intercambio comercial de Chile repunta gracias a los embarques de cobre - NOSTÁLGICA CL (Nostalgica.cl)
• Con volúmenes de exportación récord y un gran consumo las cerezas chilenas se preparan a celebrar el Año Nuevo Chino - Mundoagro (Mundoagro.cl)
• Subrei: Primer Informe Comercial del año arroja un repunte en el intercambio comercial de Chile (Mch.cl)
• SAG los Lagos certifica envío de zarzaparrilla roja a Europa - PL Prensa (Paislobo.cl)
• Exportaciones rompen con nueve meses en rojo | Diario Financiero (Df.cl)

The Chilean-Indonesian Chamber of Commerce and Culture reports a mixed week for Chilean exports. According to the National Institute of Statistics (INE), the Maule Region experienced a contraction of 16.1% in its exports in October 2023, reaching USD 180.3 million. The main exporter sector was the industry, with a total of USD 142 million, within which the food sector held the highest amount with a 35.27% contribution.

Conversely, the Tarapacá Region saw a significant growth in exports. The value reached USD 524.7 million, marking a 42% increase in twelve months. Despite this, the accumulated variation showed a 2.7% decrease compared to the same period last year, totalling USD 4.133.4 billion in 2023 so far.

Meanwhile, Chile continues to make strides in the Chinese market, with all its fruit approved for entry. The country's fruit exports to China and other Asian markets have been successful, with fresh citrus fruits in Indonesia, fresh kiwis in Vietnam, fresh plums in South Korea and Japan, and progress in fresh apples.

However, a decrease in global wine consumption has led Chile to abandon vineyards, with some considering their complete removal. This decision is influenced by the falling sales, as reported by Sebastián Labe, a winemaker from Viña Santa Rita.

Despite the recent change in government in Argentina, Chilean trade appears to remain steady. The two economies have a high degree of complementarity, more than competition. There are two international treaties governing their reciprocal commercial relationship, which cannot be easily violated without commercial, diplomatic, legal, and political complications.

In Indonesia, a tragic explosion occurred at a nickel plant, resulting in at least 13 fatalities. The accident happened during boiler repair works when a flammable liquid caught fire, causing nearby oxygen tanks to explode.

• Región del Maule: Exportaciones se contraen 16,1% en octubre de 2023 - PortalPortuario (Portalportuario.cl)
• Indonesia: al menos 13 muertos en una explosión en una planta de níquel (Telam.com.ar)
• "Chile es uno de los pocos países donde toda su fruta está aprobada para el ingreso a China" (Elmaucho.cl)
• Chile abandona viñedos ante caída de ventas (Eldemocrata.cl)
• Región de Tarapacá: Valor de exportaciones crece 42% en octubre de 2023 - PortalPortuario (Portalportuario.cl)
• El comercio de Chile con Argentina luego del triunfo de Milei (Elmostrador.cl)

The Indonesia Chile Chamber of Commerce and Culture is closely monitoring the recent economic and social developments in both countries. Here are the major headlines for the week:

According to the National Institute of Statistics (INE), the Maule Region experienced a contraction of 16.1% in exports in October 2023, reaching a total of USD 180.3 million. The industrial sector remains the region's major exporter, with food being the most significant segment within this sector.

An unfortunate accident occurred at a nickel plant in Indonesia, claiming at least 13 lives. A flammable liquid caught fire during boiler repair works causing a deflagration that led to the explosion of nearby oxygen tanks. Our thoughts are with the victims and their families.

In positive news for Chilean exports, the country's fruit has been gaining popularity in the Chinese market. The Frutas de Chile brand is making strides in the market, particularly with peaches and apricots. This development strengthens Chile's position as one of the few countries whose entire fruit basket is approved for entry into China.

Global wine consumption has taken a hit, leading countries like Chile to abandon vineyards. Some, like Viña Santa Rita, are even considering complete removal of their vineyards.

Contrasting the situation in the Maule Region, the Tarapacá Region saw a 42% increase in export value in October 2023, reaching USD 524.7 million. However, the accumulated variation showed a 2.7% decrease compared to the same period last year.

Despite the recent change in Argentina's government, Chile's trade relations with its neighbor remain steady. The two countries share a high degree of complementarity in their economies, and their trade relations are governed by two international treaties that are not easily violated.

• Región del Maule: Exportaciones se contraen 16,1% en octubre de 2023 - PortalPortuario (Portalportuario.cl)
• Indonesia: al menos 13 muertos en una explosión en una planta de níquel (Telam.com.ar)
• "Chile es uno de los pocos países donde toda su fruta está aprobada para el ingreso a China" (Elmaucho.cl)
• Chile abandona viñedos ante caída de ventas (Eldemocrata.cl)
• Región de Tarapacá: Valor de exportaciones crece 42% en octubre de 2023 - PortalPortuario (Portalportuario.cl)
• El comercio de Chile con Argentina luego del triunfo de Milei (Elmostrador.cl)

The Indonesian-Chilean Chamber of Commerce and Culture brings to you a summary of this week's news concerning trade, exports, and international relations.

Chilean exports experienced a downturn in November, with sales reaching only US$7.731 billion FOB, marking a 4% decrease compared to the same period last year. This marks the eighth consecutive month of negative performance. However, the trade balance indicated a positive balance of US$1.288 billion during the same period.

As part of the commemoration of ProChile's 50th anniversary, the General Directorate of Export Promotion will bring 25 of its representatives to Chile to hold business meetings with exporters in three cities. Participants will have the opportunity to meet with Chilean commercial attachés in 21 international markets, present their exportable offer, obtain information on trends and commercial opportunities, and analyze possible support requirements and collaboration strategies.

The drought affecting the Panama Canal has been causing delays for ships carrying exports, including Chilean and Peruvian fresh fruit and US grains. The low water level limits the number of transits through the waterway, leading to increased costs and delays. The situation has led some US agricultural producers to ship their grain by train to the Pacific Northwest and send it to Asia from there.

ProChile has launched its work plan for the coming year, emphasizing global presence and the incorporation of productive regions and SMEs. In 2023, Chilean exports represented a third of the Gross Domestic Product (GDP), a significant increase from 1990, when it was around 10%.

The cherry season has begun in the Port of San Antonio, with 15 ships setting off for countries like Brazil, the United States, and China, the latter being the main consumer due to the Asian New Year which considers this fruit as a symbol of good luck.

On a different note, Ford has acquired a stake in an Indonesian nickel project, further strengthening the ties between our two nations.

• Exportaciones en Chile vuelven a caer en noviembre | Diario Financiero (Df.cl)
• ENEXPRO Agregados Comerciales: 25 representantes de ProChile viajan al país para reunirse con exportadores (Prochile.gob.cl)
• Sequía del Canal de Panamá afecta exportaciones de granos estadounidenses y a la fruta fresca de Chile y Perú - MundoMaritimo (Mundomaritimo.cl)
• Productividad, sostenibilidad y diversidad; la hoja de ruta de la promoción chilena en el exterior · Noticias de Economía y negocios (Trade-news.cl)
• Cerezas son las protagonistas de las exportaciones chilenas esta temporada | 24horas (24horas.cl)
• Ford adquiere participación en proyecto de níquel en Indonesia (Redimin.cl)

The Indonesian-Chilean Chamber of Commerce and Culture reports a series of significant developments in international trade, showcasing the robustness of the global economic landscape despite the challenges of the past year.

Customs servers that support foreign trade are fully operational, as confirmed by the National Director of Customs, Alejandra Arriaza. This comes after intermittent glitches in foreign trade operations experienced between November 19 and 24. The National Customs Service reported 19,135 electronic transactions for imports and 3,622 for exports over the weekend of November 24-26, demonstrating the resilience and adaptability of our trade systems.

In other news, Chile's salmon exports to Argentina are on the rise, contributing to Argentina's positive trade balance with Chile, which exceeded US$ 4.15 billion in 2022. This highlights the potential for further expansion and cooperation between the two nations.

Meanwhile, Chile's peach and apricot industry is on the cusp of commencing exports to China, following the signing of an agreement in Beijing between the ministers of Agriculture of Chile and the Customs of China. This agreement was signed during the first state visit to China by the President of Chile, Gabriel Boric.

A cooperation agreement was also signed between Chile and the Chinese city of Dongguan, aimed at bolstering economic ties and promoting cross-border e-commerce. China has become Chile's largest trading partner, and this trend is expected to continue with increased exports and imports.

The 2023-2024 cherry export season has started in San Antonio, with high expectations despite the challenges posed by climate events. Approximately 50% of the total cherries exported from Chilean ports are expected to depart from the San Antonio Terminal International (STI).

Finally, Chile is venturing into gin production after achieving international renown for its wine and pisco. Last Hope Distillery, a cocktail bar in Puerto Natales, is pioneering this trend, introducing gin to locals and international visitors alike.

• Aduanas informa que servidores que soportan las operaciones de comercio exterior están 100% operativos - MundoMaritimo (Mundomaritimo.cl)
• El ranking de exportadores de salmón chileno a Argentina (Salmonexpert.cl)
• Tras visita de inspectores de la Aduana de China a Chile: Industria de duraznos y damascos chilenos a sólo un paso de comenzar exportaciones – Simfruit (Simfruit.cl)
• Los beneficios del acuerdo entre Chile y la ciudad china de Dongguan (Lanacion.cl)
• STI y Frutas de Chile dan el vamos a la temporada de exportación de cherries 2023-2024 en San Antonio - Publimicro (Publimicro.cl)
• Proyección internacional: después del vino y el pisco, Chile ahora apuesta al gin (Lavozdelquequen.com.ar)

The Indonesian-Chilean Chamber of Commerce and Culture has the pleasure of announcing the commencement of the 2023-2024 cherry export season at the San Antonio Terminal International (STI), with high expectations for this year's yield. The STI, as the main port of Chile, will see the departure of 15 Cherry Express ships, representing nearly 50% of the total cherries exported from Chilean ports. Mauricio Carrasco, Chairman of the STI board, emphasized the terminal's role in connecting Chilean efforts with the world, ensuring the best possible export conditions for the fruit.

Despite facing climate challenges such as fewer cold hours and spring rains, which primarily affected early varieties like Royal Dawn and Santina, the President of Frutas de Chile, Iván Marambio, expressed optimism for the season. It is estimated that around 81 million boxes of fresh cherries will be shipped worldwide, a slightly lower figure than last year due to these weather conditions.

In another exciting development, Chile is expanding its international presence beyond wine and pisco to include gin. Last Hope Distillery, located in Puerto Natales in Chilean Patagonia, is introducing gin to both Chilean locals and international visitors. The distillery's unique approach was born out of necessity, according to Kiera Shiels, who moved to Chile from Australia with her partner, Matt Oberg, to open the bar.

Furthermore, the Subrei is organizing a seminar to analyze the challenges and opportunities of SMEs and cooperatives in international trade. María Emilia Undurraga, Director of the Office of Studies and Agricultural Policies (Odepa), has invited participants to the Participative Public Account 2019, to review the policies developed and the strategic objectives of the institution.

These exciting developments in Chile's export sector, from cherries to gin, showcase the country's diverse produce and its commitment to fostering international trade relations.

• STI y Frutas de Chile dan el vamos a la temporada de exportación de cherries 2023-2024 en San Antonio - Publimicro (Publimicro.cl)
• Proyección internacional: después del vino y el pisco, Chile ahora apuesta al gin (Lavozdelquequen.com.ar)
• San Antonio Terminal Internacional (STI) dio comienzo a embarques de la Temporada de Cerezas 2023-2024 - MundoMaritimo (Mundomaritimo.cl)
• Subrei organiza seminario para analizar desafíos y oportunidades de mipymes y cooperativas en el comercio internacional   - ODEPA | Oficina de Estudios y Políticas Agrarias (Odepa.gob.cl)
• Frutas de Chile, SAG y STI dan el vamos a la temporada de exportación de cerezas 2023-2024 en San Antonio – Simfruit (Simfruit.cl)
• SAG, STI y Frutas de Chile dan el vamos a la temporada de exportación de cherries 2023-2024 en San Antonio | SAG (Sag.gob.cl)

The Indo-Chilean Chamber of Commerce and Culture is pleased to report a promising growth in Chile's non-traditional exports, which include creative fields such as audiovisual services, animation, publishing, video games, design, and music. According to recent figures from ProChile, Chile exported US$ 67.1 million worth of these services and products in 2022, marking a 23.7% increase from 2021.

Moreover, the first seminar focusing on the export potential of the Coquimbo region was successfully held by INACAP La Serena. This event is a testament to the increasing recognition of the region's potential for economic growth and the expansion of trade.

However, the growth of Chile's trade and economy is not without challenges. The creation of the mega-port of Chancay in Peru has raised concerns about the competitiveness of Chile's port infrastructure. The Indo-Chilean Chamber of Commerce and Culture believes that this should serve as a catalyst for Chile to invest in modernizing its port infrastructures, aligning them not only with import and export demands but also with the country's status in international trade.

On a different note, ProChile has been actively promoting Chilean products abroad. In collaboration with Big Basket, India's most prominent e-commerce company for food, ProChile launched a promotion campaign for fresh and dehydrated Chilean fruit. The campaign ran from October 29 to November 12, coinciding with Diwali, one of India's most significant festivals.

Lastly, the Cherry Committee of Fruits of Chile, representing over 85% of Chilean cherry exports, has released its second estimate for the 2023-2024 season. The forecast accounts for adverse climatic effects faced by the sector and estimates a total shipment of 81,477,564 boxes (5 kilos each). This volume is 14.6% lower than the Committee's first estimate given in October and slightly lower (-1.89%) than the exports of the previous season (2022-2023).

Source:

• Videojuegos, animaciones y música: las exportaciones creativas de Chile siguen aumentando | Diario Financiero (Df.cl)
• INACAP La Serena realiza con éxito el primer Seminario enfocado en el Potencial de Exportación de la región de Coquimbo - La Voz del Norte (Lavozdelnorte.cl)
• Competitividad regional, aumento del comercio y crecimiento económico: ¿Por qué Chile debe invertir en su infraestructura portuaria? - Portal Innova (Portalinnova.cl)
• ProChile realizó campaña de promoción fruta fresca y deshidratada chilena en Big Basket de India - Entreprenerd (Entreprenerd.cl)
• Comité de Cerezas de Frutas de Chile entrega segunda estimación de la temporada 2023-2024 – Simfruit (Simfruit.cl)