JAKARTA, RAKYAT NEWS— In a surprising turn of events, Indonesian products are gaining popularity in Israel, despite the absence of formal diplomatic relations between the two countries.

This development highlights the complexities of global trade, where economic interests often transcend political and ideological barriers. The growing demand for Indonesian goods in Israel suggests that, even in challenging political climates, commerce can serve as a bridge between nations.

The success of Indonesian exports to Israel also reflects the increasing competitiveness and appeal of Indonesia’s diverse range of products. As the nation continues to position itself as a key player in global trade, its ability to penetrate even the most unexpected markets demonstrates the strength and adaptability of its industries.

Indonesia continues to record exports to Israel, with a notable increase in export value reported as of July 2024. This trend is particularly intriguing given the lack of formal diplomatic ties between the two countries.

According to the Indonesian Central Statistics Agency (BPS), Indonesian exports to Israel have shown a steady increase both on a monthly and annual basis.

During a press conference on Thursday, August 15, Acting Head of BPS, Amalia Adininggar Widyasanti, shared that “Indonesia’s exports to Israel saw a slight month-to-month increase.”

The primary commodities driving this export growth include animal and vegetable fats and oils, chemical products, and footwear. These items form the bulk of Indonesia’s exports to Israel, reflecting a diverse range of industries contributing to the country’s economic footprint abroad.

Data from the BPS indicates that in July 2024, Indonesia’s exports to Israel reached USD 16.247 million, marking a 1.86% increase from June’s USD 15.950 million. On a year-on-year basis, the growth is even more impressive, with a 21.39% increase from July 2023, when exports were valued at USD 13.384 million.

For the January-July 2024 period, Indonesia’s total exports to Israel amounted to USD 98.539 million, a significant rise from USD 92.446 million during the same period in 2023. The top export commodities include animal and vegetable fats and oils, various chemical products, and footwear, followed by machinery, electrical equipment, organic chemicals.

She emphasized that despite this growth, exports to Israel remain a relatively small portion of Indonesia’s total international trade. The country’s primary export destinations continue to be its key trading partners, such as China, the United States, Japan, and ASEAN countries.

“Once again, the largest export markets for Indonesia are the U.S., China, Japan, India, and several ASEAN countries,” she noted.

While the current export levels to Israel may represent a fraction of Indonesia’s overall trade portfolio, the trend indicates potential for further growth. However, this potential is not without its challenges.

The lack of diplomatic relations between Indonesia and Israel could complicate trade logistics, regulatory issues, and bilateral agreements. Nonetheless, the resilience of Indonesian businesses in tapping into such a unique market could inspire similar efforts in other non-traditional markets.

Looking ahead, Indonesia’s continued success in Israel could serve as a model for navigating complex geopolitical landscapes while expanding global trade networks.

As Indonesia seeks to diversify its export markets, its ability to foster economic ties, even in politically sensitive regions, will be crucial in sustaining its growth momentum on the global stage. (Uki Ruknuddin)