Indonesian Trade Minister Muhammad Lutfi and UAE Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi are scheduled to officially launch negotiations on the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE-CEPA) on Sept. 2, 2021.

The two trade ministers are to sign the Joint Ministerial Statement on the Launching of Negotiations for the IUAE-CEPA to mark the commencement of the first round of negotiations on Sept. 2-4.

“Indonesia is optimistic that the cooperation will invigorate the country’s export market,” said Minister Lutfi.

“We’re pleased to welcome the plan to launch the IUAE-CEPA agreement this coming September. The agreement is expected to forge cooperation, especially in the trade and investment sector and at the same time encourage the recovery of the national economy that has been hit hard by the COVID-19 pandemic,” he added.

Looking toward Dubai Expo 2020

The government aims to utilize the occasion presented by the IUAE-CEPA to boost exports of local products to the UAE ahead of the Dubai Expo 2020 on Oct. 1, 2021 to March 31, 2022, after it was delayed a year from its original schedule of Oct. 20, 2020 to April 10, 2021 as a result of the global pandemic.

“On top of that, this move will open greater opportunities for the penetration of Indonesian products into not only the Middle East, but also Africa and Europe,” said Lutfi.

According to the trade minister, the launch of the IUAE-CEPA negotiations is also intended to maintain the momentum of economic cooperation between the two countries.

“The IUAE-CEPA is expected to support economic growth in the two countries through increased market access to trade in goods and services, as well as investments. Apart from that, it also aims to boost economic cooperation, including job opportunities from the two countries,” he said.

International Trade Director General Djatmiko Bris Witjaksono echoed the minister’s view, saying, “The UAE as a member of the Gulf Cooperation Council (GCC) is a nontraditional market that has become an international trade hub for exports to the Middle East, Africa and Europe, so increased cooperation will bring great benefits to the two countries,” he said.

In addition to commencing negotiations on the IUAE-CEPA, the September signing event will also launch a number of hybrid activities, including an Indonesia-UAE dialog forum as well as a business forum.

The dialog is to be themed, “Unlocking the Potential and Building Momentum Towards Indonesia and UAE Strategic Partnership”, with Jakarta and Abu Dhabi encouraging bilateral interaction and engagement in the private sector. Additionally, the forum will identify the products whose trade potentials can be explored and enhanced through the CEPA.

Meanwhile, the business forum is to discuss opportunities in investment, property, agriculture and food security, energy and renewable energy and logistics.

Total trade between Indonesia and the UAE stood at US$1.86 billion in the January-June 2021 period. Indonesia booked $850 million in exports to the UAE, with primary export commodities comprising palm oil, jewelry, iron pipes and tubes, automotive vehicles and synthetic fabrics.

Meanwhile, Indonesia recorded $1 billion in imports from the UAE, with primary import commodities including semi-finished iron and steel products, acyclic hydrocarbon, unforged aluminum, colloidal precious metals and propylene polymers.

Indonesia-UAE trade in 2020 totaled $2.93 billion, with $1.24 billion in Indonesian exports to the UAE and $1.68 billion in UAE exports to Indonesia.

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