The government of Iran has revealed that the Preferential Trade Agreement (PTA) with Indonesia is setting the stage for action soon. This development is poised to enhance the economic and trade relationships between the two countries significantly
According to a report from the Tehran Times on Friday (24/5), Kaveh Daliri, the Director General of the Iran Trade Promotion Organization’s East Asia-Pacific office, mentioned that Indonesia represents a lucrative market for Iranian goods.
Daliri highlighted that a key goal of signing this agreement is to amplify trade exchanges and collaborations. By offering tariff discounts, both nations aim to ease the process of penetrating each other’s markets.
To ensure smooth operation of the preferential trade agreement, Indonesia and Iran are putting together a joint committee. This team’s role will be to oversee and revise the list of products and discounts considered by both parties.
Products like food ingredients, oil-based materials, high-value medical devices, and electronic components are on the list for discounted trade between the two countries.
For Iran, Indonesia’s status as the country with the highest Muslim population makes it an attractive and profitable market for its products.
The PTA was signed by Iranian President Ebrahim Raisi and Indonesian President Joko Widodo in Jakarta on May 23, 2023. Iran’s Deputy Minister of Agriculture, Alireza Peimanpak, through his official X account, referred to the agreement as Iran’s first PTA with an Asia-Pacific nation.
With Indonesia being a significant global consumer market and a primary target for many countries’ exports, Iran sees an opportunity to leverage Indonesia’s economic status and membership in the World Trade Organization (WTO) to expand its trading with the country, considering Indonesia’s low import tariffs.
The trend of Iran’s exports to Indonesia has been on the rise, reaching up to $1 billion over the decade leading up to 2022.
