Valiollah Mohammadi (Courtesy of the Iranian Embassy)

Sanctions imposed on Iran by the United States have made Tehran’s efforts to boost trade with Jakarta a difficult endeavor, the country’s outgoing envoy to Indonesia said recently.

Ambassador Valiollah Mohammadi, who concluded his duties in Jakarta and left Indonesia last month, said Indonesia and Iran could have booked better trade if not for the stinging sanctions imposed by Washington.

According to Statistics Indonesia (BPS), the value of bilateral trade with Iran plunged almost 90 percent year-on-year in the first half of this year. From January to June 2018, the two countries had booked bilateral trade worth US$561.6 million, but that figure plunged to only $56.7 million in the corresponding period of this year.

“Not only did the US impose sanctions, it also intervened in other countries. [It] sent teams to other countries – from the private sector, banking and insurance – and asked them not to work with Iran,” he told The Jakarta Post in an exclusive interview ahead of his departure.

Tensions between Iran and the United States have run high since last year, when Washington pulled out of an international agreement to curb the Islamic republic’s nuclear program in return for an easing of economic sanctions on Iran.

Indonesia previously voiced opposition to the US’ unilateral pullout from the Joint Comprehensive Plan of Action (JCPOA) that was struck in 2015 by then-US president Barack Obama.

Washington also has threatened sanctions on third countries trading with Iran. As a result, Iran’s economy is predicted to shrink by 6 percent this year, according to the International Monetary Fund.

In Indonesia particularly, he explained, the threats had made banks reluctant to work with their Iranian counterparts.

“And the other challenge I can tell you is a lack of knowledge. Indonesians, especially the young generation, do not know about Iran,” he said, putting the blame partly on “fake news” about Iran and its problems that had discouraged people from seeking out trustworthy information on the country.

The ambassador stressed that Jakarta and Tehran had much potential to explore together, particularly in tourism. He said Iranians could become a potential market in Central Asia for Indonesia’s tourism industry.

Quoting Indonesian statistics, Mohammadi said Iran contributed the largest number of tourists from Central Asia to Indonesia. According to data from the Indonesian Embassy in Tehran, about 11,555 Iranian tourists visited Indonesia in 2018.

“One of the obstacles to increasing this achievement in tourism is the lack of direct flights. Right now, people must transit through another country, which is more costly and time-consuming,” he said.

This was the reason for the envoy’s engagement with stakeholders in Indonesia to establish direct routes connecting Iran with Indonesia’s major hubs, particularly Jakarta and Bali.

Unfortunately for Ambassador Mohammadi, negotiations to allow two flights per week to and from the two Indonesian cities could not be concluded before he was slated to leave.

“I hope we can reach an agreement as soon as possible. I am sure if they start these flights, a huge number of people from the two countries will come and go,” he told the Post, noting that there were also many attractions in Iran that would appeal to Indonesian tourists.

After Mohammadi leaves Indonesia, the envoy position will be temporarily filled by Mohammad Khosh Heikal Azad, whom he described as being “capable of speaking Indonesian” and as knowing Indonesia very well. (agn)

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