History of B2B Indonesia-Mexico

History of B2B Indonesia-Mexico

Before delving into the history of collaboration between Indonesia and Mexico, it is essential to understand the background of this cooperation. Business-to-business (B2B) relations between the two countries in trade emphasize the importance of long-term business relationships to achieve significant gains.

Indonesia and Mexico have engaged in B2B trade collaboration, with Indonesia exporting essential commodities such as urea fertilizer, coal-based fertilizer, coconut shell charcoal, cinnamon, nutmeg, and pepper. On the other hand, Mexico offers sesame seeds, vegetable oil, canola seeds, sunflower seeds, and manufactured products.

The Indonesian government facilitates this collaboration through the Ministry of Trade by signing a memorandum of understanding (MoU) on cooperation between domestic and Mexican companies in the B2B trade scheme. This collaboration is a pilot project that can open export opportunities and contribute to national economic recovery.

There has been a significant increase in trade between the two countries, reaching USD 1.605 billion in 2022, the highest figure in the history of bilateral relations. Indonesia's most significant B2B exhibition, the Trade Expo Indonesia (TEI), is a crucial platform for expanding markets and strengthening trade between Indonesia and Mexico.

Jorge Lpez, Vice President of COMCE, highlights the potential of the Indonesian market, which has over 270 million inhabitants, more than twice the population of Mexico. Mexico considers Indonesia a market to be reckoned with, and the TEI event is seen as an excellent opportunity to enhance business relations between the two countries.

Overall, B2B collaboration between Indonesia and Mexico in trade shows excellent potential for the economic growth of both countries and has been a primary focus in their efforts to enhance bilateral relations.

Let's talk about the history of this b2b. The diplomatic relationship between Indonesia and Mexico began on April 6, 1953, shortly after Indonesia gained independence from the Netherlands in 1945. In 1958, President Soekarno, the first president of Indonesia, visited Mexico, marking a significant step in strengthening the bilateral ties between the two countries. Subsequently, in 1962, when Mexican President Adolfo Lopez Mateos visited Indonesia, communication between the two nations deepened. Over the decades, Indonesia and Mexico fostered extensive cooperation, particularly in scientific and technical fields, through knowledge and technology exchange, contributing to mutual progress in agriculture, energy, and information technology.

In general, despite some ebbs and flows due to differences in leadership paradigms, program priorities, and domestic conditions in each country, the bilateral relationship between Indonesia and Mexico has remained positive. During President Soekarno's tenure, Indonesia regarded Mexico as a strategic partner, hub, and bridge in the Latin American region. The diplomatic relations opened by Indonesia after gaining independence were considered a breakthrough, aiming to be free from Dutch interference.

President Soekarno witnessed a peak in political relations between Indonesia and Mexico during his leadership. The close ties between President Soekarno and Mexican President Adolfo Lpez Mateos marked a historic political era in the bilateral diplomatic relationship. The proximity of Indonesia's relations with the government of Mexico and several other Latin American countries, such as Argentina, Uruguay, and Cuba, became a breakthrough for President Soekarno as part of his foreign policy agenda.

Art, literature, and cultural exchanges played a fundamental role in bilateral relations, with frequent cultural events, exhibitions, and performances enriching public understanding of cultural diversity. In the economic realm, the growth of bilateral trade reflected a commitment to expanding economic cooperation, with foreign direct investment playing a pivotal role in strengthening economic ties between the two nations.

As members of the G20, Indonesia and Mexico played significant roles in the international forum, committing to collaborate in addressing global challenges such as climate change, food security, and sustainable development. Mexico also provided scholarship opportunities for postgraduate studies to Indonesian citizens. High-level meetings between the two countries, such as President Enrique Pea Nieto's visit to Bali for the Asia-Pacific Economic Cooperation (APEC) conference 2013, further solidified their relationship.

The bilateral relationship continued to be strengthened through various initiatives, including celebrating 70 years of diplomatic relations, guest lectures, and preparations for commemorating 70 years of bilateral relations between Indonesia and Mexico. In 2020, both countries agreed to collaborate on the economic recovery post-COVID-19 pandemic. Continuing into 2022, they cooperated in the field of Halal Product Assurance (JPH) to boost economic recovery through the halal industry, covering sectors such as food and beverages, fashion, cosmetics, pharmaceuticals, tourism, media, recreation, and financial services.

With the steadily increasing value of bilateral trade, Indonesia and Mexico have successfully created mutually beneficial cooperation. One of the impacts is the growth in trade relations between the two countries, with its value rising by 727% from 1993 to 2022. Through cross-sectoral collaboration, both nations can further deepen their ties to achieve common goals in advancing prosperity and economic development in Asia and America.

Then what exactly is the purpose and benefit of the Indonesian and Mexican b2b cooperation?

B2B cooperation between Indonesia and Mexico also encourages technology and knowledge exchange between the two countries, enabling the adoption of innovations and increased capacity of the industrial sector. Its primary goal is to create an environment that supports sustainable economic growth through increased productivity and industrial competitiveness. Through investment and technology exchanges, Indonesia and Mexico can strengthen agriculture, energy, and manufacturing sectors, opening up broader collaboration potential.

In addition, this cooperation also has a positive impact on creating jobs and improving labor skills in both countries. Transferring knowledge and skills between companies can lead to inclusive economic growth by empowering local communities. This is in line with the goal of sustainable development to reduce social inequality and improve the welfare of the people.

In a global context, B2B cooperation between Indonesia and Mexico can support free trade and strengthen Indonesia's second position in the international market. The two can face global challenges, including climate change, by developing innovative and sustainable solutions through this cooperation.

Another benefit of this B2B cooperation is establishing a solid business network between companies, creating an ecosystem that supports mutual growth. This includes product and service exchanges and creates opportunities for joint investment, joint research and development, and new market development. Thus, B2B cooperation between Indonesia and Mexico is not only about direct economic benefits but also creates a foundation for long-term mutually beneficial partnerships.

There is a considerable association between Indonesian and Mexican international relations in terms of business cooperation. Diplomatic relations between the two countries began in 1953, and they have since developed substantial collaboration in a variety of fields, particularly in science, technology, economics, and culture.

The history of high-level contacts between the leaders of both nations, official visits, and the exchange of economic strategies demonstrates a tight diplomatic partnership. In the international arena, these ties demonstrate not only political issues but also how economic involvement between states may serve as a foundation for stronger international relations.

Business-to-Business (B2B) collaboration, which involves the exchange of goods and services, investments, and technology transfers between enterprises in both countries, is an important tool in the development of bilateral economic relations. With increasing trade value, Indonesia and Mexico work together to achieve economic prosperity and shared development.

Furthermore, this partnership demonstrates both countries' willingness to tackle global concerns jointly, such as climate change and economic recovery following the COVID-19 epidemic. Through partnership in a variety of industries, Indonesia and Mexico contribute to international forums such as the G20 and Asia-Pacific Economic Cooperation (APEC), demonstrating their involvement in larger global challenges.

Thus, Indonesia and Mexico's B2B cooperation not only improves the economy, but it also strengthens their foreign ties by laying the groundwork for future cross-border collaboration.

My name is Axel Davina Zahra Kusuma, a student of the International Relations program at the University of Technology Yogyakarta. I chose the International Relations program because I am interested in topics related to politics, history, and war, and I am eager to expand my knowledge about everything I am passionate about. My favorite International Relations lecturers are Mrs. Lucitania Rizky, S.IP., and Mr. Muhammad Ridha Iswardhana S.IP., M.A, who is my academic advisor. In the fourth semester, I will be focusing on the business concentration. Thank you.