PH Government Seeks to Bridge Trade Gap with ID Through Auto Parts
The Philippine government is working to bridge its trade gap with Indonesia by exporting more automobile parts to its ASEAN neighbor. At the sidelines of the 34th ASEAN Summit held last June 21 to 24, Department of Trade and Industry (DTI) Secretary Ramon Lopez discussed trade opportunities with his Indonesian counterpart, Minister of Trade Enggartiasto Lukita.
“President Rodrigo Duterte is pushing for the Philippines to narrow its trade imbalance with Indonesia. Thus we hope that openness from both countries will result in a mutually beneficial trade relationship between the two countries,” said Lopez.
Secretary Lopez noted that the Toyota Fortuner, manufactured in Indonesia, is one of the top vehicle imports of the Philippines. Hence he proposed for Indonesia to source some of its parts for the vehicle from the Philippines. In addition, one of the long-term plans to increase local exports was for Indonesia to import the Mitsubishi Mirage G4 and Toyota Vios when the Philippines becomes the regional production hub for these vehicles.
In 2018, Indonesia was the Philippines’ ninth major trading partner, with around USD.27 billion in trade. However, Philippine imports from Indonesia stood at USD6.40 billion, while Philippine exports were only at USD66.20 million.