economic relations

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)