Indonesian Trade ministry officials will travel to Nairobi next month to begin the PTA negotiations with their Kenyan counterparts.
The forum will also create awareness on available investment opportunities in infrastructure, finance, energy, textiles and tourism, the officials said.
Indonesia is the largest economy in South East Asia. In 2015, its economy was ranked 16 globally with almost $900 billion in GDP.
The plan to sign a preferential trade agreement (PTA) between Kenya and Indonesia is set to move a step forward with the first high-level meeting in July.
Indonesian Trade ministry officials will travel to Nairobi next month to begin the PTA negotiations with their Kenyan counterparts.
The PTA aims to enhance market access, reducing tariff and facilitate trade between the two countries.
Indonesian Foreign Affairs vice minister Abdurrahman Mohammad Fachir said the deal would transform the current political cooperation into economic ties and exchanges.
“In July, the Indonesian Ministry of Trade will travel to Kenya to start discussions about PTA. We mean business,” he told a business forum organised by the Kenya National Chamber of Commerce and Industry (KNCCI) last week.
The forum will also create awareness on available investment opportunities in infrastructure, finance, energy, textiles and tourism, the officials said.
Indonesia exports to the East African region include palm oil, tyres, paper products, pharmaceuticals while it imports coffee and cocoa.
Barriers to trade have been blamed for the skewed trade balance with Mr Fahir pleading with Kenya to review the stringent trade rules.
Last year, the value of bilateral trade between the Kenya and Indonesia countries was Sh21 billion ($210.8 million), which is a relatively low for the two countries that have a combined gross domestic product (GDP) of Sh92.4 trillion (Kenya Sh6.3 trillion and Indonesia Sh86.1 trillion).
Indonesia is the largest economy in South East Asia. In 2015, its economy was ranked 16 globally with almost $900 billion in GDP.
Ministry of Trade and Cooperatives head of bilateral division Oliver Konje said the minimal traded products between the two countries remains low.
“Trade volume in 2016 was also $456 million. Even though the trade balance is in favour of Indonesia we believe through consistent engagements we shall improve the state of affairs,” he said.
The KNCCI signed an agreement with the Indonesian Chamber of Commerce and Industry to boost trade relations between the two countries.
The memorandum of understanding signed at last week’s forum is expected to enhance trade cooperation and interactions between the two countries.
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