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RI hails trade deal with Iran as gateway to Middle East
Indonesia says a preferential trade agreement (PTA) with Tehran that covers hundreds of trade items will give it access to the wider region, thanks to Iran’s economic power and natural resources.
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Cranes are used to move containers at Tanjung Perak Port in Surabaya, East Java. The port, one of the country's biggest, is operated by state-owned company Pelindo III. (Antara/Zabur Karuru)
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government official says a preferential trade agreement (PTA) with Tehran that covers hundreds of trade items will give it access to the wider Middle East region, thanks to Iran’s economic power and natural resources.
Djatmiko Bris Witjaksono, international trade cooperation director general at the Trade Ministry, noted that this was only the second trade pact Indonesia had with countries of the Middle East, the first one being the Comprehensive Economic Partnership Agreement (CEPA) signed with the United Arab Emirates in 2021.
“Iran can be a hub, our gateway into the [Middle Eastern market],” Djatmiko said in an online press conference held on Monday.
With the PTA, Indonesia was setting its sights on Armenia, Azerbaijan, Afghanistan and “possibly Turkey,” he added.
As the first trade barrier to be taken down, the agreement mandates both countries to lower their tariffs on some 230 trade items.
Bilateral trade between the two countries is currently valued at around US$250 million, with the balance tilted strongly in Indonesia’s favor, as reflected in a roughly $200 million surplus, according to Djatmiko.
“The discussion proceeded relatively swiftly, it was all wrapped up in under three years,” Djatmiko explained, before adding that the agreement could be implemented on the ground within a few months after ratification, in accordance with each country’s administrative procedures.
