TEHRAN - Indonesian trade ministry has announced that Jakarta and Tehran have concluded the final stage of negotiations on a bilateral trade agreement which is called the Indonesia–Iran Preferential Trade Agreement (II-PTA.
Iranian President Ebrahim Raisi will head a high-ranking delegation in a trip to Indonesia planned for Monday, May 22.
The announcement came after the two sides finished a seventh round of talks, and the ministry said the governments could now proceed to sign the documents on the deal, which is called the Indonesia–Iran Preferential Trade Agreement (II-PTA).
The ministry said Indonesia and Iran would sign the trade agreement during a visit of Iranian President Ebrahim Raisi to Jakarta between May 22 and 24.
“Iran is a nontraditional trade partner for Indonesia. With this PTA, we hope to widen our export opportunities and expand our market reach, especially in the Middle East and Persia,” Johni Martha, the ministry’s director of bilateral negotiations.
Indonesia has been looking to new markets to diversify its export options and thereby reduce its reliance on traditional trade partners, many of which have been affected by a weakened global economy and geopolitical risks.
The government aims to speed up the country’s economic recovery from the impacts of the COVID-19 pandemic by increasing its exports.
Countries of the Middle East are among those considering alternative trade partners for the government, along with countries in Africa, South Asia, South America and Eastern Europe.
In July last year, Indonesia inked a comprehensive economic partnership agreement (CEPA) with the United Arab Emirates. The government has been pursuing similar cooperation with other Persian Gulf states, including a CEPA with Saudi Arabia since 2018.