Indonesia Expands Steel Exports to New Zealand Under AANZFTA Framework

Indonesia Expands Steel Exports to New Zealand Under AANZFTA Framework

Bekasi, The Gulf Observer: Indonesian Trade Minister Budi Santoso on Wednesday officially dispatched a consignment of welded beam steel, totaling 1,200 metric tons and valued at $1.5 million, to New Zealand. The milestone export was facilitated under the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which allows for zero percent import duty.

“The AANZFTA enables Indonesia to export steel to New Zealand without import duties, strengthening our competitive edge against other nations,” Minister Santoso stated during the send-off ceremony in Bekasi District, West Java.

Santoso highlighted New Zealand as a strategic market for Indonesian steel products, citing the Pacific nation’s large-scale infrastructure projects, including the construction of bridges and airports.

Recognizing the potential for growth, the minister urged Indonesia’s micro, small, and medium enterprises (MSMEs) to enhance product quality to compete on the global stage. He affirmed the Ministry of Trade’s commitment to supporting MSMEs in achieving Indonesia’s export target of $294.45 billion for 2025, reflecting a 7.1 percent increase from the previous year.

The Ministry has been actively collaborating with Indonesia’s trade representatives abroad to promote the nation’s key products through business matching, trade missions, and international exhibitions.

“Our aim is for MSMEs to access international markets. Exporting not only strengthens their reputation but also increases their appeal within domestic markets,” Santoso explained.

The minister also expressed optimism that the success of PT Gunung Raja Paksi, the producer of the exported steel, would encourage other enterprises to pursue opportunities in the global market.

This export underscores Indonesia’s increasing prominence in the international steel trade, leveraging favorable trade agreements to drive economic growth and diversification.