Indonesia Eyes Saudi Tariff Shift to Boost Exports

RRI.CO.ID, Jakarta - Saudi Arabia’s latest import tariff policy is not seen as closing opportunities for Indonesian products to expand their market reach.

Instead, the Ministry of Trade believes the changes open new prospects for exports of competitive, value‑added goods.

The ministry is encouraging Indonesian businesses to capitalize on the tariff adjustments, which took effect on June 26, 2026. The policy covers 51 commodities, ranging from agricultural, livestock, and fishery products to processed foods.

“Indonesia still has opportunities to expand exports of value‑added food and fishery products, particularly those not yet adequately produced by Saudi Arabia’s domestic industry, such as shrimp crackers,” said Indonesia’s Trade Attaché in Riyadh, Zulvri Yenni, in a statement quoted on the ministry’s official website on Thursday, July 16, 2026.

Zulvri explained that the policy aims to protect and strengthen Saudi Arabia’s domestic agricultural sector while remaining consistent with its commitments under the World Trade Organization (WTO).

He noted that the development of Saudi Arabia’s agriculture and aquaculture sectors is expected to increase demand for cultivation technologies, cold‑chain systems, feed, seeds, and supporting services -- areas where Indonesia can contribute.

“The various needs arising from this policy can present opportunities for cooperation between Indonesian and Saudi Arabian businesses,” he said.

Zulvri emphasized that the competitiveness of Indonesian products depends on quality, efficiency, compliance with food safety standards, and the development of value‑added products.

“We are optimistic that Indonesian products will remain competitive in the Saudi Arabian market as long as they are of high quality. Additionally, Indonesian businesses need to focus on cost efficiency, compliance with food safety standards, and the development of value‑added products to remain competitive,” he said.

The ministry, together with the Indonesian Embassy in Riyadh, will continue to monitor the implementation of the tariff policy. The government will also assess its impact on Indonesian exports and provide business operators with regular updates.

From January through May 2026, trade between Indonesia and Saudi Arabia reached USD 2.19 billion, with Indonesian exports totaling USD 843 million. Key exports included vehicles and components, vegetable and animal fats and oils, seagoing vessels, processed foods, and wood products. ***