Jakarta. Indonesian companies have set their sights on investing in fellow ASEAN member Cambodia’s food and infrastructure sectors, according to Foreign Affairs Minister Retno Marsudi.

Indonesia is now nudging the Cambodian government into making sure these investment projects go smoothly. Retno recently flew to the Cambodian capital of Phnom Penh for a joint commission for bilateral cooperation meeting with her Cambodian counterpart Sok Chenda Sophea. Talks of economic cooperation --including potential investment plans-- was high on the agenda.

“I underlined the importance of food security cooperation and investment [in that sector]. I told [the conference] that a number of Indonesian companies are ready to invest in Cambodian food and infrastructure sectors,” Retno said in a press statement following the meeting.

“I ask the Cambodian government to facilitate the Indonesian companies who wish to invest in Cambodia,” Retno said.

The minister did not disclose the name of the Indonesian companies that had been eyeing Cambodia.

However, the state logistics firm Bulog has been dropping hints that it wishes to strike an investment deal with Cambodia to bolster food security and enhance the rice supply chain. Rice is a staple food generally eaten at every meal for both Indonesia and Cambodia. Indonesia, however, is still importing its rice to meet domestic demands.

The National Food Agency (Bapanas) revealed back in May the country’s plans to import 25,000 tons of Cambodian rice to bolster supply ahead of the Eid celebrations. Cambodia exported 656,000 tons of rice throughout last year, some 15,000 tons went to Indonesia, according to the Foreign Affairs Ministry.

Talks of infrastructure investment with Cambodia are also not something new. President Joko “Jokowi” Widodo pitched the idea of Indonesian state-owned enterprises (SOEs) investing in Cambodia’s infrastructure sector when he met Cambodian Prime Minister Hun Manet a few months ago. He also proposed the possibility of an Indonesian SOE investment in Cambodia’s railway sector.

ASEAN reported that it had attracted a total of $229.8 billion in foreign direct investment (FDI) throughout 2023. Some $21.9 billion came from fellow ASEAN members. This puts intra-ASEAN investment as the bloc’s third largest-source of FDI.

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