Indonesia Proposes Twin Quarantine Port Program with China to Boost Agricultural and Fishery Exports

At the fourth High Level Dialogue and Cooperation Mechanism (HDCM) meeting between the Indonesian and Chinese governments in Labuan Bajo, NTT, on Friday, Indonesia proposed the 'Twin Quarantine Port' program to facilitate market access for Indonesian agricultural and fishery commodities in China. The program aims to establish two ports, one in Indonesia and one in China, that would streamline the quarantine process and enable smoother trade of these commodities between the two countries.

The Head of the Indonesian Quarantine Agency, Sahat M Panggabean, presented the proposal at the HDCM meeting. Key points of the program include establishing a dry port concept in Indonesia's PIK 2 and a port in Xiamen, China, to ease congestion at Tanjung Priok port, strengthening cooperation for the fish export port in Tual, Maluku province, implementing pre-border, border, and post-border quarantine mechanisms to accelerate services and reduce container dwell time, and harmonizing regulations, standards, systems, and documents between the two countries.

Indonesia also raised issues regarding market access and Sanitary and Phytosanitary (SPS) requirements for exporting commodities like bird's nests, fish meal, wheat bran, ornamental fish, live aquatic animals, fish oil, frozen coconut milk, sea cucumbers, and lobsters to China. The Indonesian government proposed expanding export opportunities for commodities like mangoes, melons, durians, fresh chicken feet, cheese, and seahorses.

Why this matters: The proposed Twin Quarantine Port program and discussions on expanding market access for Indonesian agricultural and fishery products in China could significantly boost Indonesia's exports and strengthen economic ties between the two countries. As China is Indonesia's largest trading partner, with a yearly trade volume exceeding $127 billion, streamlining the quarantine process and addressing SPS requirements are critical for Indonesian exporters looking to tap into the vast Chinese market.

The HDCM meeting, led by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, and the Chinese Foreign Minister, Wang Yi, along with the Indonesian Deputy Foreign Minister, Retno Marsudi, serves as a platform for high-level discussions and cooperation between Indonesia and China. During the meeting, the two countries agreed to deepen synergy between China's Belt and Road Initiative and Indonesia's development strategy, as well as strengthen cooperation in the digital economy, green development, and improving people's livelihoods.

During the meeting, the two sides fully reviewed the progress and confirmed the direction in their cooperation in various fields, agreed to strengthen the connection between corresponding departments, ensure effective implementation of projects, pushing for greater results in their comprehensive strategic cooperation.

Key Takeaways

• Indonesia proposed 'Twin Quarantine Port' program to ease trade with China.
• Indonesia seeks to expand exports of agricultural and fishery products to China.
• HDCM meeting discussed deepening synergy between China's BRI and Indonesia's development.
• China views Indonesia as a strategic partner for development and cooperation.
• The two countries agreed to strengthen cooperation in digital economy, green development, and livelihoods.