Indonesia is expected to sign a trade agreement with the Islamic Republic of Iran next week, according to a statement from the Indonesian Ministry of Commerce.
This announcement comes at the end of a process of seven rounds of negotiations that have now been successfully concluded. The signing of the agreement, which will be called the Iran Preferential Trade Agreement (II-PTA), will be the final step in the negotiation process, according to the statement.
Iran is a non-traditional trading partner with great potential for Indonesia. Through this preferential trade agreement, we hope that the export opportunities of key and potential products in Indonesia will increase and reach a broader market, especially in the Middle East and Persia. Johnny Director of the Department of Bilateral Negotiations of the Indonesian Ministry of Commerce Marta.
The agreement will be signed during Raisi's visit
The ministry said the signing of the agreement would take place during Iranian President Ebrahim Raisi's upcoming visit to Jakarta from May 22-24.
Marta congratulated both countries on the success of the negotiations, saying, “Through thorough communication and good cooperation, the outstanding issues have been successfully resolved.
He added: "Both sides have shown mutual flexibility and a strong commitment to early and thorough discussion of many of the terms of the preferential trade agreement that were not agreed during the previous meeting."
According to the ministry's statistics, the total trade volume between Indonesia and Iran reached US$54.1 million in March 2023. Meanwhile, the total trade volume between the two countries in 2022 was US$257.2 million. .
Indonesia exports peanuts, motorcycles, industrial monocarboxylic fatty acids, wood fibers, auto parts and accessories to Iran.
Meanwhile, its main imports from Iran are dates, hydrocarbons (such as oil and gas), plant alkaloids, tools, machinery and models for illustrative purposes, and wine.
Indonesia is currently the fifteenth largest economy in the world. It has a GDP of 1.23 trillion dollars and an annual growth rate of 5.7%. Experts predict that by the end of 2024, Indonesia could become the fifth largest economy in the world.
It is not clear what this agreement could mean for the potential prospects of Israel-Indonesia relations.
Mark Regev contributed to this report.
