Jakarta (ANTARA) - The Indonesian and Timor Leste governments plan to review and update the 21-year-old Traditional Border Crossings and Regulated Markets Agreement.
"This plan will be carried out under the bilateral trade agreement framework currently under discussion," Indonesian Trade Minister Budi Santoso remarked in a statement on Friday.
He explained that the agreement focuses on regulating border trade to meet the daily needs of people in border areas, excluding export and import activities.
One important aspect of facilitating trade flows, he added, is harmonizing regulations at border crossings.
According to Santoso, Indonesia is committed to strengthening of cross-border trade, including by capacity building and regional economic integration.
"We found that around 70 percent of products circulating in the Timor Leste market originate from Indonesia. Smooth distribution is key to maintaining the affordability of Indonesian products for the people of Timor Leste," he addressed.
Meanwhile, the Deputy Prime Minister of Timor Leste, Fransisco Kalbuadi Lay, welcomed Indonesia's support and commitment to enhancing cross-border trade cooperation.
As a follow-up, his country plans to send delegates to Indonesia for training in food and drug product supervision.
"We are waiting for a visit in the near future, either to sign a trade agreement or to conduct a joint trade mission," Lay stated.
From January to August 2025, total trade between the two countries reached US$272.72 million, an increase of 10.57 percent compared to the same period last year, which was recorded at US$246.65 million.
During that period, Indonesian exports to Timor Leste were recorded at US$268.11 million, while imports from Timor Leste stood at US$4.61 million. Thus, Indonesia recorded a surplus of US$263.50 million with Timor Leste.
In 2024, Timor Leste was Indonesia's 42nd largest export market and 126th largest source of imports, with total trade amounting to US$391.36 million.
That year, Indonesian exports to Timor Leste reached US$386.50 million, while imports from Timor Leste were valued at US$4.86 million, resulting in a surplus of US$381.64 million for Indonesia.
Indonesia’s main exports to Timor Leste in 2024 included motorcycles, motor vehicles for goods transportation, cement, palm oil, and pasta. Meanwhile, imports from Timor Leste consisted of coffee, copra, other oilseeds, flour, and cassava tubers.
