Egypt Seeks US$5 Billion Bilateral Trade With Indonesia

EGYPT · TRADE

Egypt and Indonesia want their bilateral trade to reach US$5 billion by 2030, more than double last year’s level. President Abdel Fattah al-Sisi set the target in Jakarta on Sunday 11 October after talks with Indonesian President Prabowo Subianto, the Egyptian presidency said.

For US readers, the visit shows a close American security partner building ties with the world’s most populous Muslim-majority country. Egypt is pitching itself as a factory floor for Arab and African markets, and it wants Indonesian money to help build it.

What Sisi and Prabowo Agreed in Jakarta

Sisi flew to Jakarta from Malaysia on Saturday 10 October for a two-day official visit. Talks at the Merdeka Palace, the Indonesian president’s official residence, followed on Sunday.

At a joint press conference, Sisi said in Arabic both sides would work to raise trade volume “to reach five billion dollars by 2030”. He added that Egypt wants Indonesian companies to increase their investments in the Egyptian market.

The two presidents then witnessed the signing of four memoranda of understanding, presidential spokesman Mohamed El-Shenawy said. They cover fisheries and maritime affairs, statistics, a strategic partnership action plan, and visa exemption for diplomatic, service and special passports.

A memorandum of understanding is a statement of intent rather than a binding treaty. Over lunch, Sisi told his host that the two countries had written “another new page” in their relations.

How Much the Two Countries Trade Today

Bilateral trade reached US$2.38 billion in 2025, according to Indonesian trade figures reported by Investor Trust, a Jakarta business outlet. Indonesia sold goods worth US$1.94 billion to Egypt and bought US$439.8 million in return.

That left Indonesia with a surplus of about US$1.5 billion. In the first half of 2026, bilateral trade already reached US$1.74 billion, almost three-quarters of the 2025 total.

Reaching US$5 billion by 2030 would still need growth of about 16% a year from the 2025 level. Over the five years to 2025, trade grew by about 6% a year, the same figures show.

In August, Indonesian Trade Minister Budi Santoso proposed talks on a preferential trade agreement and a free trade agreement with Egypt. A preferential deal cuts tariffs on a short list of goods, while a free trade agreement covers most trade.

Palm Oil, Fertilisers and a Sovereign Wealth Fund

The joint statement welcomes “tangible progress” between Danantara and the Future of Egypt for Sustainable Development agency. Danantara is Indonesia’s sovereign wealth fund, launched in February 2025 to hold the state’s stakes in large state-owned companies.

Future of Egypt is a state development authority that began under the armed forces and runs the New Delta land reclamation scheme. Egypt’s parliament voted in July 2026 to make it independent of the defence ministry.

The presidents pointed to openings for the two bodies in crude palm oil and its products, and in phosphate fertilisers and their raw materials.

They also asked the two bodies to look at infrastructure, energy, logistics and agribusiness. Indonesia is the world’s largest palm oil producer, while Egypt mines phosphate, a key raw material for fertiliser.

Sisi also pitched joint manufacturing in priority sectors. According to Daily News Egypt, both sides want Egypt to become a production and export hub for Arab, African and international markets.

Security, the Nile and Gaza

The joint statement commits both sides to deepen defence and security ties to strengthen their national capabilities. No arms contracts or values were announced.

On the Nile, Prabowo backed Egypt’s efforts to protect its water rights, the Egyptian spokesman said. Egypt has long opposed Ethiopia’s large hydropower dam on the Blue Nile, the river’s main tributary.

Sisi also recalled Prabowo’s presence at the Sharm el-Sheikh peace summit in October 2025, where a Gaza ceasefire document was signed. He called for full, safe and sustained humanitarian access to the Gaza Strip.

On the Gulf, the two presidents voiced deep concern about the continued escalation and widening hostilities. They called for immediate de-escalation and restraint.

What It Means for US Readers

Egypt is one of Washington’s closest Arab partners and a key mediator on Gaza. The joint statement backs full implementation of US President Donald Trump’s comprehensive plan to end the conflict in Gaza.

Trump attended the October 2025 ceasefire signing in Sharm el-Sheikh, the same event Prabowo joined. Indonesia also praised Egypt’s central role in getting humanitarian aid into Gaza.

For US investors, the trade target matters less as a number than as a signal of where Cairo seeks capital. Indonesian state money could join Gulf and Western investors in Egyptian farming, fertiliser and logistics projects.

Egypt is also opening state companies to outside investors. The state-owned Banque du Caire plans to sell 30% of its shares in November, another test of foreign appetite for Egyptian assets.

What Is Not Known

Neither government has published a timetable, sector targets or financing behind the US$5 billion bilateral trade goal. The full texts of the four memoranda have not been released.

In August, Indonesia proposed a second joint trade committee meeting before the end of 2026. No date has been announced.

It is also unclear whether the defence talks will lead to any arms purchases. Prices, volumes and company names for the palm oil and fertiliser projects have not been disclosed.

More: Egypt news in English, every day from The Rio Times.

Frequently Asked Questions

How much do Egypt and Indonesia trade now?

Bilateral trade reached US$2.38 billion in 2025, according to Indonesian figures. Most of it was Indonesian exports to Egypt, worth US$1.94 billion.

What did the two presidents sign in Jakarta?

On Sunday 11 October, they witnessed four memoranda of understanding. These cover fisheries, statistics, a strategic partnership action plan and visa exemption for official passports.

What is Danantara?

Danantara is Indonesia’s sovereign wealth fund, launched in February 2025 to hold the state’s stakes in large state-owned companies. The joint statement asks it to expand work with an Egyptian state agency on palm oil, fertilisers, energy and logistics.

Does the visa deal help tourists or business travellers?

No. The memorandum covers only diplomatic, service and special passports, which officials carry. Ordinary travellers still follow each country’s normal visa rules.

Why does a bilateral trade target between Egypt and Indonesia matter to Americans?

Egypt is a key US partner on Gaza and controls the Suez Canal. Its growing Asian ties shape where investment flows and which partners Cairo can lean on.

Sources: Egyptian Presidency, Sisi’s remarks at joint press conference (Arabic), 11 October 2026; Egyptian Presidency, Sisi meets Prabowo at Merdeka Palace (Arabic), 11 October 2026; Egyptian Presidency, Egypt-Indonesia joint statement (Arabic), 11 October 2026; Daily News Egypt, 11 October 2026; Investor Trust (Indonesian), 8 August 2026; ANTARA (Indonesian state news agency), Indonesian Trade Ministry figures, 8 August 2026; Ahram Online, Future of Egypt authority law, 14 July 2026.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief