Jakarta. Indonesia is missing out on hajj catering opportunities due to a lack of a Saudi trade pact that could have been able to spur greater food exports, including fish, according to Trade Minister Zulkifli Hasan.

Indonesia has been eyeing non-traditional markets to drive its exports. While Indonesia and Saudi Arabia share close ties, mostly thanks to the hajj cooperation, there remains a huge room for growth on the economic front. 

Zulkifli said that Indonesia could not reap the economic benefits of feeding the many Indonesians coming to Saudi Arabia, be it for hajj or umrah -- the minor Muslim pilgrimage. The minister added that Saudi Arabia had been importing the ingredients of the food served for the pilgrims from Thailand and Vietnam, to name a few.

“Although we are close, many Indonesians go to [Saudi Arabia] for hajj and umrah. The food consumed [by the pilgrims] is imported from other countries like Thailand and Vietnam, be it the fish, vegetables, among others,” Zulkifli told a press briefing in Jakarta on Thursday.

“There are millions of Indonesian pilgrims. … It is Indonesian money, but it is Thailand and Vietnam that are reaping the economic gains. And it turns out it is because we do not have a trade pact [with Saudi Arabia],” Zulkifli said. 

Presentation slides shown during the presser revealed that Indonesia was exploring a trade pact with the Gulf Cooperation Council (GCC) of which Saudi Arabia is a member of. Other GCC members include Kuwait, the United Arab Emirates (UAE), Qatar, Bahrain, and Oman. Last January, Indonesia sent a trade mission to Saudi Arabia. This mission brought a contract worth $155.7 million involving Indonesian micro, small and medium enterprises (MSMEs).

Government data shows Indonesia-Saudi Arabia trade grew from $5.6 billion in 2021 to $7.5 billion the following year. However, Indonesia recorded a $3.5 billion deficit with Saudi Arabia in 2022. 

The Observatory of Economic Complexity (OEC) data shows Saudi Arabia imported $71 million worth of fish filets in 2021. They mostly came from Vietnam ($27.2 million). Thailand also became Saudi Arabia’s largest source of imported processed fish imports ($89.2 million) the same year. Followed by Indonesia ($55.9 million). 

Vietnam’s top exports to Saudi Arabia in 2021 were coconuts, Brazil nuts, and cashews, amounting to $40.1 million. 

Indonesia is home to the world’s largest Muslim population. Indonesia has a quota to send 241,000 hajj pilgrims this year.

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