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RI’s exports to Middle East continue despite higher freight cost: Govt

Jakarta (ANTARA) – Trade Minister Budi Santoso announced that Indonesian exports to the Middle East are still proceeding normally, despite the challenges of rising freight costs.Santoso said this information was obtained from business players from the Indonesian Export Companies Association (GPEI).”They told us there were indeed some impacts, especially for exports to the Middle East,” the minister stated in Jakarta on Friday.He said that overall demand for Indonesian commodities from Middle Eastern countries remains relatively stable, but exporters are currently facing rising logistics or freight costs.”Demand from the Middle East hasn’t actually decreased, but the cost of freight is increasing,” he explained.Despite facing rising transportation costs, Santoso said Indonesian exporters are maintaining their export activities to the region.He hopes that global logistics conditions will improve for the trade activities to resume normally.Statistics Indonesia (BPS) previously stated that the conflict in the Middle East had the potential to impact global trade activity, although the impact on Indonesian trade was considered relatively small.BPS recorded the value of Indonesian exports to the Middle East reached approximately US$9.06 billion, or approximately 3.5 percent of total national exports, with the main destinations for Indonesian exports in the region including the United Arab Emirates, Saudi Arabia, and Oman.Commodities exported by Indonesia to the Middle East include palm oil and its derivatives, vehicles and their parts, precious metals, and various chemical products.Previously, tensions in the Middle East had recently escalated following the conflict involving the United States (US), Israel, and Iran.This conflict has raised concerns regarding the flow of international trade routes in the region.One strategic route drawing concern is the Strait of Hormuz, a vital shipping lane for oil and various commodities from the Gulf region to global markets.Disruptions to this route have the potential to impact logistics and distribution costs for international trade.