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ndonesia is opening its market for products from the Palestine by charging zero import duties so as to show concrete support not only politically but also economically.

Trade Minister Enggartiasto Lukita said a larger trade agreement with the Palestinian Authority (PA) was scheduled to be completed this year, he said after meeting Palestinian Ambassador to Indonesia Zuhair SM Al Shun on Wednesday.

In December 2017, Enggartiasto signed a zero import duty agreement for dates and olive oil with Palestinian Minister of Economy Abeer Odeh on the sidelines of the 11th World Trade Organization (WTO) Ministerial Conference in Buenos Aires. Dates and olive oil entering Indonesia are currently charged a 5 percent import duty.

The agreement came into effect on Jan. 1 after leaders from both countries approved it, Enggartiasto said, marking the start of wider trade cooperation.

“We will open our market for all of their commodities, but we have to be guarded because we do not want any free riders,” he said, referring to non-Palestinian goods.

In return, Indonesia would also export its products to Palestine duty free. Enggartiasto said Indonesia only requires a list of products Palestine wants to export and import, while his ministry would provide a list of Indonesian products available for export.

“We can say that we are going to sign a PTA [preferential trade agreement],” Enggar said. “The difference is that in agreements with other countries we conduct studies and engage in negotiations, but not with Palestine.”

“All of the products will have zero tariffs so Palestinian people will get lower prices,” he said, adding that the Palestinian Authority is to propose a time for further discussion. He said that starting in mid-June delegations from both countries would start to draft an agreement to be signed in July or August. The agreement could be signed either in Palestine or Indonesia, Enggartiasto said, adding that if the PA agreed to sign it in Indonesia, it could happen in Jakarta or Yogyakarta.

Meanwhile, Al Shun said the Indonesian government and people were really supportive of the Palestinian cause and “we appreciate whatever kinds of support we are receiving from this lovely country”.

He also said Odeh was eager to come to visit Indonesia to discuss and sign the agreement.

Enggartiasto noted the trade agreement with Palestine would be among the quickest Indonesia had made. For example, the 2017 agreement signed in Buenos Aires, he said, was mandated in a direct order from President Joko “Jokowi” Widodo just before the minister left Jakarta.

He said Palestinians were eager to import many products from Indonesia, such as food, plastic products and machinery.

“Palestine needs many goods and they have said they would prefer to import from Indonesia,” he said, adding that the value of trade with Palestine was relatively low. According to his ministry, Indonesia exported coffee, tea, pasta, bread, perfume and soap worth US$2.05 million in 2017, while Palestine sent $341,000 worth of dates to Indonesia.

Enggartiasto said Indonesia would want to make a profit when trading with Palestine.

“In trade, there are things we have to calculate and there are others that we do not have to. The value of friendship with Palestine is higher than any economic calculation,” he said.

In addition to opening the domestic market, Enggartiasto previously said Indonesia was working to help Palestine become a permanent WTO member.