PHNOM PENH: Indonesia is moving to deepen its economic footprint in Sihanoukville, signalling readiness to explore concrete investment partnerships with Cambodian small and medium enterprises, just weeks after local business leaders called for Jakarta to shift from simple trade to on-the-ground investment.
At the opening of the Indonesia–Sihanoukville Business Meeting on Tuesday (Nov 25), Indonesian ambassador Santo Darmosumarto urged both sides to “find ways to strengthen mutually beneficial business cooperation”, noting the sizeable Indonesian community already established in the coastal province.
The meeting, organised by the Indonesian embassy in Phnom Penh, brought together embassy officials and members of the Federation of Associations of SMEs (FASMEC) Sihanoukville, following the federation’s recent participation in the Indonesia Trade Expo 2025 in Jakarta.
“Discussions centred on unlocking new cooperation opportunities in Sihanoukville, particularly for Indonesian companies considering expansion into sectors such as health, education, construction, real estate and finance,” explained a statement from the embassy.
It said Cambodian representatives reaffirmed their commitment to support Indonesian investors seeking to operate in the province.
FASMEC Sihanoukville president Vann Sokheng welcomed the embassy’s initiative, calling it a timely boost to local economic ambitions.
“We highly appreciate Indonesia’s contribution towards the mutually beneficial growth of Sihanoukville’s economic sector. This is important in the overall effort to strengthen bilateral economic cooperation,” he said.
Ambassador Santo encouraged both sides to move beyond dialogue.
He proposed developing “concrete activities” to intensify business-to-business interactions, citing Cambodia’s rising demand for Indonesian products and services, particularly in healthcare.
He pointed to the embassy’s Health Fest in Sihanoukville last year as evidence of growing public interest in Indonesian offerings.
The meeting also heard expert briefings on Cambodia’s investment climate, including regulatory trends and opportunities in banking, healthcare and real estate.
Sokheng’s push for investment gains traction
The embassy’s engagement comes shortly after Sokheng, leading a 25-member delegation to the Indonesia Trade Expo in October, publicly urged Indonesia to prioritise direct investment in Preah Sihanouk over continued export-driven trade.
Speaking to The Post during the Jakarta fair, Sokheng stressed that Cambodia gains little from acting primarily as an importer.
“When we only import, we gain little more than commissions,” he said.
“But when investors come directly, the benefits multiply — through job creation, technology transfer and export growth,” he added.
He called for incentives to revive stalled buildings and underdeveloped zones in Sihanoukville, while also reinforcing Cambodia’s growing attractiveness as an investment destination, citing stable geography, lack of major natural disasters and improving business conditions.
The appeal was made against the backdrop of a widening boycott of Thai products in Cambodia, driven by public anger over perceived hostilities from Bangkok.
The movement has sharply increased demand for alternative sources of goods — particularly from Indonesia, whose market profile in Cambodia is rising.
“Nationalist activities cannot be done alone,” Sokheng said at the time. “We must unite to form an economic community and consume what we produce.”
Trade momentum strengthens foundation for investment
Ambassador Santo, who also attended the Jakarta expo, said Cambodia’s growing engagement is building the base for investment.
“Investment follows trade. You first start with interactions — interactions become friendships, friendships become trade,and trade opens opportunities for potential investment,” he told Cambodian businesses.
Indonesia’s trade fairs, he added, are well-matched to Cambodia’s SME-driven market, where purchasing volumes are moderate but steadily expanding.
Bilateral trade between Cambodia and Indonesia reached about $1.09 billion in 2023, rising 15 per cent from the previous year. Cambodian exports — although relatively small — surged by more than 150 per cent, while imports from Indonesia continued to climb.
From January to October 2025, trade volume between the two stood at $889.2 million.
With both sides expressing readiness to elevate cooperation, Sihanoukville appears set to become a central test ground for transforming long-standing trade links into concrete Indonesian investment. - The Phnom Penh Post/ANN
