Indonesia secures first Saudi clove purchase in months with 10-tonne deal
Jeddah’s trade promotion arm signed a virtual sales-and-purchase agreement on Aug 13 for 10 tonnes of Indonesian cloves at USD 78,000 (RM1.3 billion), the first confirmed deal since regional freight costs tripled, Indonesia Trade Promotion Center (ITPC) Jed…
Source: Ministry of Trade Indonesia · August 20, 2026 at 5:31 PM · AI-assisted report
Single-source
KUALA LUMPUR, 21 AUGUST 2026 —
Listen to this article
DomainFork Audio · read aloud
Jeddah’s trade promotion arm signed a virtual sales-and-purchase agreement on Aug 13 for 10 tonnes of Indonesian cloves at USD 78,000 (RM1.3 billion), the first confirmed deal since regional freight costs tripled, Indonesia Trade Promotion Center (ITPC) Jeddah said Thursday.
Market Impact
The contract, brokered during a June 2026 business-matching session, covers cloves valued at USD 78,000 (RM1.3 billion) and was awarded to PT Navva Nusantara Commodities of Indonesia by Al Nafea Foods Co. of Saudi Arabia, according to ITPC Jeddah’s chief Bagas Haryotejo. The cargo is scheduled for shipment from Indonesia to Jeddah despite logistics costs that have climbed to roughly three times pre-conflict levels, he said.
Year-to-date non-oil trade between Indonesia and Saudi Arabia totalled USD 1.69 billion in the first half of 2026, down from USD 3.94 billion in the same period of 2025, the ministry’s trade statistics show. Indonesia’s non-oil surplus with Saudi Arabia narrowed to USD 357.3 million in H1 2026 from USD 1.82 billion in the first six months of 2025 as freight inflation eroded margins.
The agreement reinforces the strategic value of the Indonesia Trade Promotion Center’s matchmaking programme, which has now facilitated two transactions for PT Navva Nusantara Commodities since 2023, the company’s director Ati Hernawati Dani said. Al Nafea Foods Co., a 60-year-old Saudi trading house, will take delivery of the consignment and is evaluating additional Indonesian lines including cinnamon, coffee beans, cardamom and cooking oil, purchasing manager Abdallah Al Nahdi said.
ITPC Jeddah will continue to prioritise small and medium-sized exporters as freight headwinds persist, Bagas said, while urging Indonesian suppliers to maintain quality to sustain buyer confidence in a tighter logistics environment.