Malaysia and Indonesia Agree to Expand Bilateral Trade

Investment, Trade and Industry Minister Johari Abdul Ghani and Indonesian Trade Minister Budi Santoso met in Jakarta for the fourth Malaysia-Indonesia Joint Trade and Investment Committee meeting to expand bilateral trade and investment. The two nations agreed to improve the implementation of the 2023 Border Trade Agreement and enhance economic connectivity in border areas.

Discussions focused on market access, e-commerce, agriculture, and halal standards. As part of the agreement, Malaysia will comply with a new Indonesian export policy that requires strategic natural-resource commodities to be channeled through a designated state-owned entity.

Bilateral trade reached RM114 billion last year, with a 10 percent year-on-year increase to RM71.1 billion recorded in the first seven months of 2026. Cumulative Malaysian investments in Indonesia between 2023 and 2025 totaled approximately RM70 billion.