Over the years, Indonesia-Mexico bilateral relations have been going well despite the ups and downs, partly due to the different paradigms of the heads of state and program priorities, as well as the domestic conditions of each country. Over the years, Indonesia-Mexico bilateral relations have been going well despite the ups and downs, partly due to the different paradigms of the heads of state and program priorities, as well as the domestic conditions of each country.
Indonesia has a clear stance and views Mexico as a strategic partner and bridge country in the Latin American region. Arts and cultural exchanges are also a fundamental part of bilateral relations, with frequent cultural events, art exhibitions and performances to enrich people's understanding of cultural diversity. In the economic sphere, the growth of bilateral trade reflects a commitment to expanding economic cooperation, with foreign direct investment being a key factor in strengthening economic ties between the two countries.
As Mexican ambassador Alvarez said at the 70th anniversary celebration, "The relationship between the two countries is built on mutual respect, solidarity, cooperation, and friendship". Bilateral relations continue to be strengthened through various initiatives, including the celebration of 70 years of diplomatic relations, guest lecture events, and B2B cooperation.
Business-to-Business (B2B) is a cooperative relationship that focuses more on long-term business relationships, the cooperation is an effort by the Indonesian government to open export opportunities for Indonesia's superior commodities that can help restore its national economy now and in the future. As a pilot project of the trade-sharing cooperation with Mexico, Indonesia will export urea fertilizer, coal fertilizer, coconut shell charcoal, and various spices, namely cinnamon, nutmeg, and pepper. Meanwhile, Mexico offers sesame seeds and vegetable oils in the form of canola and sunflower seeds as well as manufactured products.
When viewed from the Interdependence Theory, establishing Business-to-Business (B2B) trade cooperation shows the interdependence between the companies and countries involved. This reflects the application of interdependence theory in the B2B trade cooperation relationship between Indonesia and Mexico.
Both countries need each other's products and services. Indonesia, for example, exports agricultural products, such as coffee, tea and rubber which become raw materials for Mexican industries. On the other hand, Mexico exports manufactured products, such as automobiles and electronics, which are a necessity for Indonesian industries.
Trade between Mexico and Indonesia has increased significantly from USD 105 million in 2019 to USD 1.605 billion in 2022, the highest revenue value registered in the history of bilateral relations between the two countries.
Indonesia's exports to Mexico were recorded at USD 381 million and Indonesia's imports from Mexico amounted to USD 96 million, resulting in a surplus for Indonesia of USD 285 million. Meanwhile, in 2020, the total non-oil and gas trade between the two countries was recorded at USD 1.13 billion. Indonesia exports the most electrical machinery and equipment products with an export value from Mexico in 2020 of USD 94M, mineral oil and products from distillation with an export value of USD 74.9M.
This cooperation successfully optimizes the use of natural resources from both countries and reflects efficiency in allocation for maximum results.
So, the answer to why Indonesia establishes b2b cooperation with Mexico in our opinion is because Indonesia sees Mexico as a bridge to reach a wider Latin American market, maintain and strengthen the long-standing relationship between the two countries and of course because this cooperation is a long-term business that will produce great value for both countries as mentioned above. business-to-business (B2B) trade reciprocal cooperation between Indonesia and Mexico, creating opportunities for greater trade cooperation in the future, the pace of product development will grow and vary.
It is a classic problem that countries from two different continents have challenges caused by conventional issues such as geographical distance, language barriers, lack of awareness, local interests of both countries, lack of infrastructure, and relatively low population to travel. Although we didn't specifically mention it, this collaboration certainly had many drawbacks and challenges. My other group mates will surely discuss that, so instead of going into detail about the shortcomings let me write down the suggestions I found from some of the journals I have read.
