Jakarta. Dubai-based agrifood companies are seeking entry to Indonesia -- Southeast Asia’s largest economy with a population of over 270 million people. 

Indonesia today already has a comprehensive economic partnership agreement (CEPA) with the UAE, potentially opening up more opportunities for Emirati companies to tap into the Southeast Asian market. Dubai Chambers --the city’s business lobby-- recently brought along a number of producers and exporters on a trade mission to Jakarta. They were all seeking to make use of the trade agreement that entered into force last year. Some of the visiting companies were in the food and beverage business such as Le Chocolat, Nutridor Dairy Manufacturing, Tamreem Dates Company, and The Açai Spot. 

“Agriculture, agrifood, as well as food and beverages in general are key sectors,” Mohammad Lootah, the president and chief executive officer of Dubai Chambers, told reporters in Jakarta on Monday.

“The Indonesia-UAE CEPA has helped remove a lot of the trade barriers. … We are even encouraging our companies to use Indonesia as a base to expand to the ASEAN market,” Lootah said, while also acknowledging Indonesia's economic power in the Southeast Asian region.

One of the visiting companies, The Açai Spot, is seeking to work with Indonesian distributors, including retailers. Maryna Boyko, the sales manager at The Açai Spot, told the Jakarta Globe that the company saw Indonesia as a potential market as people become increasingly aware of the need to embrace a healthy lifestyle. The company produces açai in Brazil before it gets sent to Dubai. It has açai cafes, and is open if Indonesian entrepreneurs wish to set up a franchise in the country. 

“We are looking for [Indonesian] distributors who are already in the food business, ” Boyko said in an interview with the Globe. 

Boyko commented on the possibility of having Indonesia as a hub to export to other ASEAN markets. She said: “It is possible, but it depends on the size of the company that we are working with.”

Last year, the UAE brought a trade mission for some talks with Indonesian firms. State-Owned Enterprise (SOE) Minister Erick Thohir claimed at the time that Emirati agricultural giant Elite Agro was mulling investing in Indonesia’s food estate project. The minister did not go into details in the discussions with Elite Agro, but he said that having the partnership would benefit both Indonesia and the UAE amidst rising food prices. 

Government data shows Indonesia-UAE trade totaled $5 billion throughout 2023. Bilateral trade volume hit $814.1 million in the first two months of 2024, up by 5 percent compared to the same period last year. The Indonesia-UAE CEPA will gradually eliminate or reduce 94 percent of the import duties across all the tariff posts.